Similarly, tech companies have also begun to expand their business in the medicine and device areas.

Major players in both the pharmaceutical and medical device space are diversifying themselves by acquiring new technology and start-ups to enhance their business and product offerings in both aspects (i.e. Also, at the regional and domestic levels, recent trends have shown that digital technology will open up more opportunities in various sectors, including healthcare. Our Global Transactions Forecast, compiled in collaboration with Oxford Economics before the COVID-19 pandemic, had expected healthcare M&A values to total USD 267 billion and to rise to almost USD 350 billion in 2021.Īt the global level, we have seen a trend of high costs and disruptive business models bringing about consolidation of core pharmaceutical products and divestment of non-core offerings.

The healthcare and life sciences industry has traditionally been quite robust in terms of supply and demand (driven by, among other factors, a growing aging population, the increasing prevalence of chronic diseases, the innovations and advancements in medical technology, and the expansion of health care systems in developing markets) and consequently we saw a steady number of deal flows in this sector before the pandemic and even global megadeals in 2019, such as the recordbreaking USD 77 billion acquisition of Ireland-based Shire by Takeda, Japan's largest pharmaceutical company - the largest-ever overseas acquisition by a Japanese pharmaceutical company - and Bristol-Myers Squibb’s acquisition of Celgene, which was valued at USD 93 billion.

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