The Brexit vote, which occurred back in June 2016, left the world wondering what would happen to the United Kingdom’s economy, as well as the impact it would have on their own country. Many people predicted that the vote would have a negative impact on the Life Sciences industry – effecting the future of funding and drug prices. Yet, within only a few months, we have begun to see a positive impact on mergers and acquisitions (M&A) in the Life Sciences industry.
Bloomberg Technology reported that the U.K.’s decision to leave the EU has already caused chaos within the economy, however, the country’s pharmaceuticals industry is remaining strong. The UK’s health-care industry has seen a 21% rise in total M&A for the year so far.
After the final decision of the Brexit vote was announced, the pound dropped by more the 11% – making both Britain assets attractive targets for overseas investors. Bloomberg Technology quoted Jacky Scanlan-Dyas, a partner at Hogan Lovells in Tokyo: “Brexit could represent an opportunity for foreign buyers seeking growth as some U.K. assets are looking very attractive now from a valuation standpoint.”
Outside of the Life Sciences, two major M&A of U.K. companies paved the way for inbound deals. Britan’s ARM Holdings PIc was acquired by SoftBank, while Odeon & UCI Cinemas Group was acquired by AMC Theatres. Fox News reported that the value of the U.K.’s inbound deals in July 2016 saw a significant growth from both the previous year and the month of July’s average value over the last 10 years.
It is without doubt that the U.K.’s Life Sciences industry faces implications following the Brexit verdict, and perhaps these implications are what drives companies to continue their dedicated efforts to lead the way in bringing new, evolutionary treatments to market.
Companies in the Spotlight
After uncovering the reasoning for a powerful M&A market, even post-Brexit, let’s take a look at a few Life Sciences companies leading the way in the U.K.
Teva Pharmaceutical Industries Ltd. recently completed its acquisition of Allergan Plc’s generics business for $40.5B. Bloomberg Technology reported that prior to the acquisition, Teva was selling a portfolio of drugs in the U.K., Ireland and Iceland to acquire profit and attract interest in both companies and buyout firms.
GlaxoSmithKline Plc, the U.K.’s largest drug maker – according to Bloomberg Technology, and Google parent Alphabet Inc.’s Life Sciences unit are currently in the process of forming a joint venture bioelectronic medicines firm. GlaxoSmithKline also plans to invest 275M pounds at manufacturing sites in the U.K. to increase medicine production; especially for exporting purposes.
Ziarco Pharma Ltd., a U.K. Biotechnology backed by Pfizer Inc.’s venture capital arm, has attracted interest for its experimental dermatology treatments. In turn, the company is currently exploring a sale that could be worth over $1B.