Private Equity Investors now have “Huge Interest” in Medcomms Sector

Director of mergers and acquisitions (M&A) practice at Lincoln International, James West, identified there is “a huge interest” in medical communication companies from private equity firms.

The pharma medcomms market is valued at over $10 billion and increasing at an annual rate of 12%; private equity companies can spend more than ever before investing into new projects.

The total amount of cash available for investment for all investment management companies in Europe almost €295 billion last year, a record high.

Over the last 2 years in the medical communication industry, the number of mergers and acquisitions has increased.

The quantity of transactions completed in 2021 has surpassed previous highs, with 25 in North America and Europe, up 19% from 2020.

James West explained that investors are “attracted by the exciting growth trajectory of the medcomms sector and the likely substantial financial returns. Medcomms is still a fragmented industry, so there is a wealth of opportunities to build and extend consultancy platforms through acquisitions, both in the UK and in the US.”

However, “private equity firms with little experience of medcomms will need help scoping the market to understand the most promising agencies to invest in”.

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