Acquiring Innovation: Current Considerations

Recently FTC, Bureau of Competition leadership opened the GCR Live 7th Annual Antitrust Law Leaders Forum. Using Bureau previous cases and remedy studies, Acting Director, D. Bruce Hoffman, individually supported policy and activities that could impact healthcare and life science company's innovation strategies.

Overall, the agency is concerned and will continually focus and act on the threat of elimination to innovation competition that certain mergers between competitors may raise.

Additionally, the agency will focus on placing the greater risk of [innovation] failure on merging firms, rather than the American public. Specifically, transactions where complex pharmaceutical products need to be divested, divestiture of contract manufacturing capabilities (revenue generating marketed products) rather than other assets, such as pipeline products (products in development) will be required.

How will this affect future deal valuations and transactions?

How will this affect future pipeline investments?

Barclay Consulting continues to inform its clients' innovation strategies.

Barclay Consulting should inform and add depth to your company's innovation strategy.

Reference:

It Only Takes Two to Tango: Reflections on Six-Months at the FTC