European Biotech M&A: Often Last Resort, but Welcome Nevertheless
Executive Summary
Consolidation among Europe's biotech firms is picking up, but less for strategic reasons than simply to secure the cash to survive. Whatever the drivers, though, and however ruthless the concurrent cost- and program cutting, M&A should help create better adapted, bigger companies-something investors have long been calling for. Indeed for most merging companies, M&A is just the first step towards more strategic business-building moves in the near future.
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2004: Consolidation Year for European Biotech?
Despite investors' pleas, most observers agree there are still far too many small, sub-critical biotech firms in Europe. Yet two late-2003 deals-CeNeS' acquisition of TheraSci, and Develogen's merger with Peptor-may point to more consolidation both in public and private European biotech during 2004. And the early signs are that such deals may be driven less by sheer desperation, and more by a recognition of what both public and private investors want.
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