DarshanTalks Podcast

5 Surprising Causes of Life Science Deal Failures

May 03, 2024 Darshan Kulkarni
5 Surprising Causes of Life Science Deal Failures
DarshanTalks Podcast
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DarshanTalks Podcast
5 Surprising Causes of Life Science Deal Failures
May 03, 2024
Darshan Kulkarni

We discuss the five common reasons behind the failure of mergers, acquisitions and licensing deals  in the life sciences industry. 

Inadequate understanding of capability, where focusing solely on financials without comprehending the target company's regulatory and compliance processes leads to failure. 
The side project dilemma, illustrated by Philip Morris' venture into pharmaceuticals, emphasizing the importance of aligning with core business objectives. 
Clash of perspectives, exemplified by cultural and business differences between BioGene and Novartis, highlighting the necessity of alignment in strategic vision. 
Low margins on generic drugs, as seen in Teva's acquisition of Actavis, revealing the 
challenge of profitability in this sector.
Overpaying, stressing the significance of thorough due diligence to avoid paying more than a company's actual value. 

For assistance with M&A due diligence, contact us at 302-252-6959.

Support the Show.

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Show Notes

We discuss the five common reasons behind the failure of mergers, acquisitions and licensing deals  in the life sciences industry. 

Inadequate understanding of capability, where focusing solely on financials without comprehending the target company's regulatory and compliance processes leads to failure. 
The side project dilemma, illustrated by Philip Morris' venture into pharmaceuticals, emphasizing the importance of aligning with core business objectives. 
Clash of perspectives, exemplified by cultural and business differences between BioGene and Novartis, highlighting the necessity of alignment in strategic vision. 
Low margins on generic drugs, as seen in Teva's acquisition of Actavis, revealing the 
challenge of profitability in this sector.
Overpaying, stressing the significance of thorough due diligence to avoid paying more than a company's actual value. 

For assistance with M&A due diligence, contact us at 302-252-6959.

Support the Show.