Los Angeles, CA – July 22, 2024 – We are thrilled to announce that Channing Hamlet, Managing Director, has been featured in the Los Angeles Times as an M&A and Valuation expert in the Life Sciences, Biotech, and Healthcare services industries. The article titled “Robert T. Braithwaite, Channing Hamlet, and Daniel A. Platt Share Insights on the Healthcare, Biotech, and Life Sciences Landscape in 2024” dives deep into the current trends and future outlook of these industries.
In this piece, Channing Hamlet , along with other industry leaders, shared his expert perspective on the evolving landscape of healthcare, biotech, and life sciences. Here are some of the key takeaways from Channing:
- Focus for Medical Device, Pharma, and Biotech Companies in 2024: Channing Hamlet highlighted the importance of outsourcing critical functions due to mounting pressure to accelerate time-to-market while managing costs. He stated, “Our firm primarily advises companies that provide software and services for the device, pharma, and biotech markets. Given that these industries face mounting pressure to accelerate time-to-market while managing costs, outsourcing critical functions like R&D, clinical trials, manufacturing, and sales/marketing has become indispensable. As a result, we have seen a number of specialized service providers develop significant expertise in marketing, clinical research, regulatory compliance, and data management. Many of these companies bring core competencies in technology, automation, AI, and other areas that are outside of the core technical expertise resident within the device, pharma, and biotech sectors. As a result, many of these companies that bring strong capability are experiencing strong growth. Despite inflation and higher interest rates, these trends continue to support strong growth within the services/software areas, significant investment and M&A activity, and strong valuations.”
- Rising Healthcare Innovation Verticals in California and the Life Science Industry: Channing noted the rise in various healthcare innovation verticals. “In California and the broader life sciences industry, we see a significant rise in healthcare innovation verticals such as telemedicine, personalized medicine, biotechnology, and health data analytics. Companies providing services in these areas are becoming increasingly impactful as they address critical needs for more efficient, personalized, and data-driven healthcare solutions. These life sciences and healthcare services firms are attracting higher valuations and more unsolicited interest from acquirers due to their potential to revolutionize patient care, reduce costs, and enhance clinical outcomes. As these services become integral to the healthcare ecosystem, their strategic importance and market value continue to escalate, making them prime targets for M&A activity.”
- Current State of M&A in Healthcare, Biotech, and Life Sciences: Channing provided insights into the M&A landscape, saying, “Dealmakers in these three industries are eager to get deals done in 2024 as they grow more comfortable navigating an environment of elevated interest rates and regulatory pressure. Demand for GLP-1 drugs for type 2 diabetes and weight loss has spurred significant M&A activity, including Roche’s acquisition of Carmot Therapeutics and Novo Nordisk’s proposed $16.5B acquisition of Catalent. These deals address GLP-1 supply shortages rather than indicating a broader industry trend. In 2023, biopharma M&A activity rebounded with a total deal value of around $152B, the highest since 2019. PwC predicts that deal totals in 2024 could range from $225B to $275B. As of December 2023, M&A investment in the global life sciences industry totaled $191B, up from $142B in 2022, driven by strong capital reserves and the pursuit of new revenue streams. This data underscores a dynamic and competitive M&A environment across these industries.”
- Biggest Mistakes Healthcare Services Companies Are Making Today: Addressing common pitfalls, Channing observed, “One of the biggest mistakes healthcare organizations make today is mismanaging unsolicited acquisition interest. Many fail to adequately prepare for potential offers, missing opportunities to maximize value. Companies often lack a clear strategy for evaluating and responding to unsolicited bids, leading to rushed decisions and suboptimal outcomes. Additionally, healthcare organizations sometimes overlook the importance of operational efficiency and cost management, focusing too narrowly on growth without optimizing internal processes. Neglecting patient-centric innovations and failing to adapt to regulatory changes can also diminish value. To avoid these pitfalls, organizations should proactively develop M&A strategies, enhance operational efficiencies, and stay attuned to market and regulatory shifts. Valuation reports and industry expert valuation advisors, like those at Objective, can provide critical insights to help navigate these challenges.”
The LA Times article also features perspectives from Robert T. Braithwaite and Daniel A. Platt, adding depth to the discussion and offering a comprehensive view of the industry’s current state and future direction.
Read the full article here.
Stay tuned for more updates and expert analyses from Channing Hamlet and our industry practices, as we continue to provide thought leadership in the investment banking and valuation space. To discuss any of the insights from this piece, or to have a confidential conversation about your own sell-side investment banking or valuation needs, contact us today.
Disclosures
The above testimonials may not be representative of the experience of other customers and is not a guarantee of future performance or success.
This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.
