Will Trump’s election make pharma M&A great again?

Donald Trump

Good news, biopharma companies. Some industry watchers think a Donald Trump presidency could help the sector break out of its M&A lull.

One reason? A potential rise in valuations. Shares have been sagging under investor fears of drug-pricing reform--and while both Trump and Democratic rival Hillary Clinton vowed action on that front during their campaigns, Clinton was seen as a bigger pharma foe. Biopharma stocks soared on Trump’s election, and if that upward trend continues, targets that have refused to sell at their depressed valuations may be willing to chat with wannabe acquirers, analysts and bankers told Reuters.

Another potentiality that could help rev things up: an influx of cash that’s currently stashed overseas. Trump has said that he plans to work with Congress on allowing U.S. companies to pay a lower tax rate when bringing that cash back home. That scenario would certainly help Pfizer, which says it has $80 billion overseas that it wants to bring stateside.

On-Demand Webinar

Leveraging A Medical Record-Enriched Patient Dataset for COVID-19 Research

You are invited to join a webinar that will explore the ways researchers can leverage this enriched dataset for important COVID-19 research. Sign up today for this informative webinar to learn how you can leverage one of the only medical record reviews solely using real-world data from hospitalized COVID-19 patients.

While last year saw the industry shattering M&A records, 2016 has been a different story. Life sciences dealmaking is down 65% from last year, Reuters says.

If Trump proves a catalyst, though, companies may revisit some takeover-rumor favorites, including oncology specialist Tesaro and rare-disease drugmaker Sarepta Therapeutics.

Of course, the change won’t necessarily happen overnight, Reuters notes. Companies and investment banks will need time to assess whatever policies Trump brings to the table before they take any M&A leaps.

And PwC, which last month released its Global Pharma & Life Sciences Deals Insights Q3 2016 Update, doesn’t expect to see a quick turnaround either, considering the other factors affecting the M&A slowdown. While “deal volumes in the future have the ability to trend upward,” it’s more likely they’ll stay “depressed” until “uncertainty around general economic factors and industry conditions” are cleared up, the report authors wrote.

Read more on

Suggested Articles

Life sciences companies have pivoted quickly during COVID-19 - Syneos Health® is supporting more than 80 active COVID-19 projects, including vaccines.

New York's Covaxx has signed on with three South American nations to provide 140 million doses of its early-stage COVID-19 vaccine.

To get the COVID-19 vaccine out quickly, Pfizer has been running rehearsals at distribution sites, creating "growing confidence," U.S. officials said.