2024 will have been a year of mixed fortunes for mergers and acquisitions. However, the picture varies from sector to sector and from region to region. In France, the pharmaceuticals, life sciences and healthcare services sectors demonstrated resilience, with several notable transactions. Experts at AURIS Finance, an M&A consultancy, give you their analysis.
In France, M&A transactions are currently playing a key role in stimulating innovation and growth in the healthcare sector. This analysis is outlined in a sector study by the consultancy firm PwC. Drawing on data from the first half of 2024, the consultancy highlights that M&A transactions continue to be a primary strategic instrument for healthcare company managers. M&A enables companies to realign their strategies by divesting unprofitable business units and pursuing new products and services. This strategy is particularly popular with pharmaceutical companies at the end of the drug patent cycle.
Lower-yielding assets
In the current economic climate, healthcare companies are facing challenges due to a restricted macroeconomic environment. With interest rates stable but still high, major healthcare companies are finding it harder to raise funds. However, by divesting their least profitable assets and reallocating capital towards higher-return opportunities, these companies can position themselves for future success. This is further compounded by an increasingly restrictive regulatory framework. In France, the Social Security Department has informed its supervisory authorities of the risk of a shortfall in the National Health Insurance’s expenditure on medicines. An agreement with the pharmaceutical industry to contribute to the healthcare system is being finalised.
Large-scale operations
2024 saw two significant developments in the sector. One of these has been widely reported: the transfer of Doliprane (330 million units sold in France in 2023) to American ownership. In autumn 2024, the pharmaceutical group Sanofi announced that it had selected the investment fund CD&R (Clayton, Dubilier & Rice) to sell it a 50% stake in Opella, its mass-market pharmaceutical products unit. The deal is expected to have a valuation of €15.5 billion. Another notable move was the acquisition of Amolyt Pharma, a Lyon-based biotech company specialising in rare metabolic diseases, by the Swedish British pharmaceutical group AstraZeneca for $1.05 billion. This represents a substantial purchase price for a French Tech start-up.
Competition between the behemoths
This transaction demonstrates PwC’s analysis that mega-deals between major industry players have been superseded by targeted acquisitions. Pharmaceutical companies are now seeking innovations that can offset the anticipated decline in revenues due to the loss of exclusivity in the years ahead. This shift has led to heightened competition among major industry players. Deep-tech technologies, biotech and innovative services in the healthcare sector are under particular scrutiny. To gain a foothold in a niche innovation, major groups are not hesitating to increase their valuations.
Our experts at your service
In 2025, innovative companies in the healthcare sector will be a key focus for major groups. New acquisitions are anticipated.
AURIS Finance’s team of sector-specialised experts is well-positioned to assist. Our specialists in the Life Sciences, Pharmaceuticals and Healthcare sectors will be at your side throughout your transaction.
