Trinity Partners Identifies Hallmarks of Successful US Biopharma M&As

New white paper analyzes trends over the past ten years and pinpoints optimal timing, portfolio attributes and more for maximum ROI

BOSTON--()--Trinity Partners, a global life sciences consulting firm, today announced the findings of a white paper exploring the strategic decisions that successfully position a company for a maximized M&A exit. By examining the past ten years of biopharma M&A activity, Trinity has developed a framework that summarizes the optimal path for private companies, taking into consideration major factors that inform valuations including financials, R&D portfolio, licensing opportunities, partnerships and more.

Sample key findings from the white paper, which was launched in concert with the 35th Annual JP Morgan Healthcare Conference, are included below:

  • Acquisition continues to be an attractive exit option for private companies as evidenced by the consistently positive trends in the market (as opposed to the Initial Public Offering (IPO) volatility) and high return multiples associated with these deals.
  • The optimal timing of the exit in respect to ROI is either upon conclusion of Phase II, where a significant value inflection occurs, or following Phase I in the case of early efficacy findings. Proof of concept is the key to maximizing the possibility of an exit.
  • Successful exits are associated with a more focused portfolio of 1-2 assets targeting lucrative markets (e.g., autoimmune, oncology); though exceptions exist, especially for platform technology companies.

The white paper comes at a time when the number of IPOs has fallen substantially since 2014, making an M&A exit strategy a viable and probable option for start-ups.

"Emerging biopharma companies are facing an ever-evolving market landscape, making it challenging to define a successful exit strategy. Acquisitions have proven to be the most likely and often the most successful way to ‘exit well’ and bring innovative products to patients," said Leslie Sandberg Orne, Senior Partner at Trinity Partners. "As a partner to the life sciences industry, Trinity has developed a framework to help C-level executives at small, innovative companies find the most optimal path.”

To discuss these findings or other trends with a Trinity executive during this year’s JP Morgan Healthcare Conference, please contact Trinity@pancomm.com. To download the full white paper, please click here: http://bit.ly/2iQZlTa

About Trinity Partners

Trinity Partners is a trusted life sciences strategy consulting firm that takes a personalized approach to working with pharmaceutical, biotech, medical device, and diagnostic clients worldwide to create tailored, evidence-based solutions that drive business strategy and impact bottom lines. To learn more about our Partners, click here: [http://www.trinitypartners.com/index.php/our-team/our-partners/]

Contacts

PAN Communications
Kathryn McMahon, 617-502-4300
kmcmahon@pancomm.com

Contacts

PAN Communications
Kathryn McMahon, 617-502-4300
kmcmahon@pancomm.com