In comments to the Department of Justice (DOJ)’s Anticompetitive Regulations Task Force, PULSE urged DOJ and Federal Trade Commission (FTC) officials to revisit antitrust policies that are deterring pro-competitive life sciences mergers and acquisitions (M&A).
PULSE’s comments assert that the recent Hart-Scott-Rodino (HSR) premerger notification rule and 2023 Merger Guidelines, as well as state-level proposals, risk obstructing critical partnerships that fuel innovation and competition among life sciences companies of all sizes. To maintain America’s role as a global life sciences leader, these policies must be revised to better reflect the unique and fundamental role of M&A in America’s life sciences industry.
Read below for key takeaways from PULSE’s comment letter:
1. M&A Fuels Innovation, Competition and Growth in America’s Life Sciences Industry
- “M&A plays a differentiated role in America’s life sciences industry and is fundamentally about improving a company’s chance of successfully bringing a new treatment or cure to patients… Many of today’s most important treatments and cures – including for rare genetic conditions, heart disease, cancers, and more – have reached patients through a merger or acquisition that helped connect early-stage innovation with the infrastructure and capabilities needed to complete later-stage R&D and manufacturing.”
- “Pro-innovation M&A also helps ensure that promising breakthroughs are not left behind due to financial constraints… The possibility of a future acquisition represents an important exit pathway for investors, driving investment in early-stage research.”
2. Recent Antitrust Policies and Proposals Risk Deterring Pro-Competitive Life Sciences M&A
- “We are concerned that policies like the recently finalized changes to the Hart-Scott-Rodino (HSR) premerger notification requirements and the 2023 Merger Guidelines fail to account for the overwhelmingly pro-competitive role of M&A in the life sciences. Additionally, we urge the Department to remain vigilant as states consider new, state-specific standards of competition and premerger review processes, which could result in inconsistent requirements across state lines.”
- “Venture capital leaders have increasingly cautioned that an approach to M&A enforcement that creates uncertainty for investors risks ‘leaving startups with fewer exit options and making it harder for VCs to invest in innovative new ideas’… Such outcomes ultimately harm patients, as promising breakthroughs may languish for lack of funding or partner support.”
3. Removing Barriers to Pro-Competitive Life Sciences M&A Can Help Maintain America’s Leadership
- “We encourage the Anticompetitive Regulations Task Force to closely examine how recent federal and state developments in merger review policy have created uncertainty and unintended barriers for innovation in America’s life sciences industry.”
- “In the life sciences sector, removing regulatory barriers and promoting pro-competitive partnerships is not just pro-business, it is pro-patient… Robust investment and innovation in the life sciences not only lead to new biomedical advances but also stimulate domestic manufacturing and boost U.S. economic growth.”
These comments follow PULSE’s recent response to the Office of Management and Budget’s Request for Information on Deregulation, urging the Trump administration to revisit the latest HSR rule. As policymakers increasingly look to eliminate barriers to competition, growth and American leadership across the economy, it is vital to ensure that our nation’s antitrust policies support, rather than impede, pro-competitive life sciences M&A.
To read PULSE’s full comment letter and learn about specific recommendations for reform, please click here.