Industry dynamics and the corporate structure of companies within the Pharmaceutical Industry have been particularly influenced by globalization trends and world economic outlook. In addition, given its high importance on human health, companies within this industry have been subject to a variety of laws and regulations with respect to research and development, clinical trials, patent protection, distribution and even price controls.
Throughout the years, Mergers & Acquisitions have increasingly become a fundamental strategic tool for companies within the pharmaceutical industry. Pharmaceutical companies are using M&A in order to gain access to new product innovation with high growth potential instead of having to incur in large investments in Research and Development. Moreover, pharmaceutical companies have been accumulating significant amounts of cash on their balance sheets in an environment where interest rate yields are at historic lows, providing them with the funds required for acquisitions. In addition, during the past decade the distribution chain has witnessed considerable consolidation through horizontal and vertical integration. On the retail side, consolidation of large pharmacy chains or drugstores are becoming more prevalent, thus increasing their bargaining power against wholesalers and even pharmaceutical manufacturers. Under the increasing competitive environment from large drugstores, wholesalers have opted for horizontal or vertical integration via M&A.
Capital has an extensive and deep knowledge of the pharmaceutical industry, having advised clients from Central and South America during M&A transactions and other advisories throughout various sectors within the industry, including:
