How Can Biopharma Companies Sustain Growth & Innovation?

The new research reveals perspectives on the life sciences industry based on an extensive analysis of over 300 M&A deals made by the top 30 biopharma companies between 2010–2021. Traditionally, biopharma companies have relied heavily on M&A for growth, with more than 60% of their marketed assets coming through acquisitions over the past 15 years. Rising costs of inorganic growth: for M&A deals valued at more than $500M, the average takeout premium in biopharma has grown from 51% in 2018 to roughly 71% in 2021. This is in part due to the increasing amount of venture capital flowing to biotechs with total investments in biotech nearly doubling in 2021 compared to 2019. In Q1 2022, public markets slowed with biotech performance dropping and capital raised decreasing.

Accenture identifies four key growth pathways for biopharma companies, including insight into the growth pathways the top 30 biopharma companies used to achieve their goals. Accenture identified three key actions biopharma companies should implement in this new era of innovation and growth.