New research presented at a Congressional staff briefing highlighted the strong, positive relationship between pharmaceutical mergers and acquisitions (M&A) and the launches of new drugs for patients.
Research Finds that Pharmaceutical M&A Drives New, Novel Drug Launches
PULSE partner Charles Crain, Managing Vice President of Policy at the National Association of Manufacturers, and Dr. Anand Krishnamurthy, Principal at Cornerstone Research, discussed findings from new research on the association between M&A and drug launches.
- Across over 30,000 drug projects between 1995 and 2025, there is a large, positive, statistically significant association between pharmaceutical M&A and new and novel drug launches, even after controlling for potentially confounding variables.
- Drugs in development that undergo M&A are nearly twice as likely to launch compared to non-acquired drugs.
- Novel drugs that undergo M&A are more than three times as likely to launch.
- M&A between large and small firms significantly improves outcomes – drug candidates involved in large-small transactions are three times more likely to launch than those acquired between two small firms.
M&A Plays a Unique, Fundamental Role in America’s Life Sciences Ecosystem
PULSE partners Ian McLaughlin of BioNJ and Lara Flynn of Life Sciences PA also spoke firsthand to the critical role of pro-competitive M&A and its positive impact on the life sciences ecosystem in their respective states, including:
- M&A facilitates new drug launches by allowing innovative, early-stage companies to connect promising therapies with the resources, investment and expertise of established companies, improving the chances that they will reach patients.
- Life sciences M&A has a positive “ripple effect” on local economies, with acquisitions and spin-offs creating meaningful investment in high quality-jobs, additional capital for early-stage companies and increased opportunities for innovation.
- Predictability in M&A policy and enforcement is critical to sustaining U.S. leadership in biopharmaceutical innovation and advancing cutting-edge therapies for patients.
Policymakers Must Ensure Stability and Predictability for Life Sciences M&A
There was broad consensus on the need for a balanced and predictable approach to M&A enforcement, which is critical to preserve innovation and ensure that patients continue to benefit from new, cutting-edge therapies. As policymakers consider the role of pro-competitive life science M&A, data-driven research and real-world experience are essential to informing the conversation.