Please login to the form below

Not currently logged in
Email:
Password:

M&A drivers in healthcare communications

By James West

James West

Pharma is under pressure. The route to successful commercialisation and sustained market share continues to evolve in response to the changes spanning the industry, namely: declining R&D productivity, the demise of the blockbuster model, increased utilisation of data and technology and changing consumer behaviour.

As the stakeholder group has evolved, pharma companies are looking for the most effective ways to inform customers, whether they are patients, healthcare professionals or payers, about the benefits of their products using the most innovative methods. At the same time, government agencies are also seeking to increase patient awareness and education, and encourage disease prevention.

These factors have led to an increase in the number of specialist communication companies excelling
in their chosen niche. These pockets of high-growth, exciting businesses have fuelled company mergers and acquisitions (M&A) in the healthcare communications sector over the last five years, and the trend looks set to continue in 2019 with eight transactions having taken place in Q1 already.

One factor increasing M&A is the growing involvement from private equity that is looking to invest further in the sector, driving up company valuations and catalysing follow-on acquisitions. Key examples include LDC’s £11m minority investment in Lucid Group in 2017 and Amulet Capital’s acquisition of Open Health at the end of 2018.

The global nature of the industry has led to a rise in cross-Atlantic deals with buyers looking to expand their footprint and independent agencies realising synergistic benefits from being part of a globally connected

group. For example, Avenir Global, a Canadian holding company, now has a global healthcare operation of around 250 people with the acquisition of Cherry in November 2018. LDC also provided follow-on funding for Fishawack to expand with the acquisition of US-based Blue Latitude Health, Dudnyk and brand communications agency Healthcircle.

As the role of industry, regulators and the expectations of patients continue to develop, we see increasing opportunities for acquisitive organisations to partner with fast growing, exciting agencies and communications specialists.

James West, Director, Results Healthcare

In association with

Results healthcare

5th June 2019

From: Marketing

Share

Featured jobs

Subscribe to our email news alerts

PMHub

Add my company
W2O Group

W2O Group is an integrated marketing agency with expertise in brand and digital strategy, creative development and communications services. We...

Latest intelligence

OPEN Health Graduates and the XP Support Group
During our graduate induction period in September 2018, we were asked to find a charity that could benefit from the expertise of the OPEN Health practices. We made the decision...
Alexander Devine Website has gone live!
As part of the OPEN Health CSR programme one of the charities we support is Alexander Devine. They are a local Children's Hospice based in Maidenhead who provide a truly...
Drug pricing and competition
Strengthening business competition and reducing anti-competitive practices
How the CMA is tackling high prices for essential drugs...

Infographics