Brexit and longer-term sector trends could boost UK pharma M&A/investment

The pharmaceutical industry is one of the UK’s great success stories, writes Michael Jewell, healthcare partner at Cavendish Corporate Finance, in an Expert View piece on how the sector could see an increase in deal-making as Brexit looms.

Overall, the life sciences sector that generates more than £30 billion ($39 billion) a year for the UK economy, supports some 500,000 jobs and has enjoyed rapid growth over the past decade.

The pharma sector accounts for around 10% of GDP and also generates a £3 billion trade surplus. This growth has been achieved partly through a close relationship with the European Union (EU), which now must be revised as part of the process of leaving the trading bloc. However, the UK’s upcoming EU departure coupled with such sector trends as increasing patent expirations and declining returns on research and development (R&D) could help boost mergers and acquisitions (M&A) and investment in the UK pharma sector.