Health-Care M&A Deals in Q1 Set Record Pace as Economy Recovers

Bloomberg Health Law & Business News

Gary W. Herschman, Anjana D. Patel, and Zachary S. Taylor, attorneys in the Health Care & Life Sciences practice, in the firm’s Newark office, co-authored an article in Bloomberg Health Law & Business News, titled “Health-Care M&A Deals in Q1 Set Record Pace as Economy Recovers.” The piece was also co-authored by Hector M. Torres, Managing Director at FocalPoint LLC, and Larry Kocot, Principal at KPMG LLP, and Carole Streicher, Partner at KPMG LLP.

Following is an excerpt:

The volume of announced and closed health-care industry deals in March (276) was the highest of any month so far in 2021, bringing total deal volume in the first quarter of the year to 723, up 52% from the first quarter in 2020 (476). Topping the list was the life science and pharmaceutical industry, as work involving the Covid-19 vaccine continues.

This record pace is unlikely to continue for the entire year, but we expect the investment outlook to remain strong for the health-care and life sciences sectors as the country continues to recover from the Covid-19 pandemic, patients and consumers more fully resume and increase use of preventive and routine care delayed due to health concerns, and the economy continues to recover.

In addition, congressional efforts to improve infrastructure and increase jobs could fuel further transaction activity. However, some possible health-care system reforms, such as changes to Medicare eligibility or drug pricing reforms, could have unpredictable impacts on sectors of the health-care industry.