Sector Report

Bourne Partners is one of the most active pharma services M&A advisors, closing 4 transactions so far in 2024 across clinical and supply chain services. Read our Q1 2024 Pharma Services Market Update below for all our sector insights. M&A and investment appetite across pharma services remains strong to start the year. We anticipate that interest will persist and continue to strengthen, especially as healthcare specialist investors have had continued fundraising success and have dry powder ready to be deployed. Key market tailwinds include continued outsourcing initiatives across the pharma value chain, R&D funding recovery and acceleration across the board, clinical trial starts increasing by 28% year over year, need for manufacturing capacity and quality, and tech-enablement throughout all pharma services subsectors.

Key Takeaways

1. Greater Distribution and Patient-Centricity of Clinical Trials. There has been a significant increase in focus on patient-centric approaches to clinical trials, ensuring better access to treatments and improved patient experiences, as the industry continues to face enrollment and retention shortfalls. Distribution networks are evolving to accommodate hybrid trials and reach diverse, historically underrepresented patient populations
2. Digitization, Data Aggregation, and AI Capabilities. Advances in data analytics and aggregation allow for better data quality and insights into patient outcomes, real-world evidence, and drug safety. Pharma services providers are leveraging data to optimize clinical trial designs, enhance drug discovery, streamline manufacturing and supply chains, create commercialization and market access strategies, and inform decision-making processes across the entire pharma value chain
3. Manufacturing Capacity and Quality. Capacity and quality are paramount to the industry. The past year has seen crippling drug shortages and quality issues. There is a glut of capacity in some areas, like CGT and OSD, while injectable fill/finish capacity remains scarce
4. Consolidation and Integration, or Specialization? Pharma services providers face a delicate balance between integrating various services (such as CROs, CDMOs, and logistics providers) and maintaining specialized expertise. Finding the right mix of expansion and specialization is essential for efficient operations and successful outcomes as outsourced service providers adapt to meet the needs of drug sponsors

In the dynamic healthcare industry, staying ahead of trends is essential for informed decision-making and seizing opportunities. Please reach out to our research team for more information: research@bourne-partners.com

Compare to our 1H 2022 Pharma Services Sector Snapshot here.