According to data complied by Thompson Reuters, overall life science deal making has fallen 65 percent compared to the same period last year.
Industry insiders said attributed the decline to weak biotech stock prices, which decreased nearly 30 percent since Democratic presidential nominee Hillary Clinton declared her intent to combat price gouging in the industry, according to the article. Though Mr. Trump said drug price inflation needs to be addressed, Ms. Clinton was much more vocal on the issue throughout the campaign season.
Mr. Trump’s claim that he will lower taxes for U.S. companies that bring overseas cash to the U.S. may also lead to an uptick in M&A activity.
“[The pace of M&A deals] could accelerate if changes in the tax code support this trend by facilitating the repatriation of cash ‘trapped’ overseas for bigger biopharma companies,” said Adnan Butt, an analyst at RBC Capital Markets.
Analysts acknowledge that it may take several months before M&A activity in the industry increases, according to the article.
More articles on transactions and valuations:
Hackensack Meridian to acquire JFK Medical Center
LifeBridge Health acquires 2 outpatient surgery centers
South Haven Community Health System to join Bronson Healthcare Group
