The Swiss Pharmaceuticals sector produced four USD1 billion+ deals in the first half of 2018. This is not surprising given the efforts by Pharmaceuticals and Life Sciences businesses to push new boundaries and continuously innovate. But when it comes to corporate development, Life Sciences – like many industries – is overly dependent on traditional M&A strategies. There is a growing need to use transactions to improve operations and deliver synergies. Asset swaps can be an attractive alternative transaction model that can help to achieve the objective.
Rising R&D expenses, pricing pressures and the growing cost of regulatory compliance: all result in the need for efficiency. And for Life Sciences in particular, to optimize portfolios in order to achieve category leadership in fewer, selected segments. In this regard, asset swaps can be a cost-effective way of reinforcing focus and strengthening your core business. Also to deliver synergies by exchanging complementary assets that can be swiftly integrated into existing operations.