The healthcare sector continues to play a significant role in merger and acquisition activities, with 10.2% of all deals in 2024 falling under this category, according to data from LSEG. This trend is expected to persist due to the increasing demand for healthcare services and drugs resulting from an aging population, as well as the growing market for weight loss medications. In response, pharmaceutical companies are investing heavily in expanding the production capacity of new weight loss drugs, providing a major boost to contract development and manufacturing organizations (CDMOs). Lazard Ltd, a leading investment bank, has appointed Michele Colocci, formerly the chairman of mergers and acquisitions at Morgan Stanley, as vice chairman and managing director to strengthen its healthcare advisory services. Colocci will be based in London and will contribute significantly to Lazard’s European operations, as part of the company’s healthcare franchise headed by David Gluckman. “Michele’s vast experience as a trusted advisor to clients will prove immensely valuable to us as we further expand our strong European business,” commented Lazard’s CEO Peter R. Orszag. In February 2024, Novo Holdings announced its $16.5 billion acquisition of Catalent, a prominent manufacturing subcontractor, in order to enhance the production of its bestselling weight loss medication, Wegovy. Lazard has been involved in some of the most significant transactions in the healthcare industry, including Vertex’s $4.9 billion purchase of Alpine Immune Sciences, Galderma’s initial public offering (IPO), and Biogen’s $7.3 billion acquisition of Reata Pharmaceuticals. (Source: Finance.Yahoo.com, “Lazard hires veteran healthcare dealmaker”, May 9, 2024.)
To summarize, Lazard has appointed Michele Colocci, a seasoned healthcare dealmaker, to reinforce its healthcare advisory services in response to the increasing importance of the healthcare sector in dealmaking. Colocci, previously the chairman of mergers and acquisitions at Morgan Stanley, will assume a newly created global position based in London, contributing to Lazard’s healthcare franchise led by David Gluckman in Europe. This move comes as dealmaking in the healthcare sector reaches record levels, fueled by the rising demand for healthcare services and drugs among an aging population, as well as the surging market for weight loss medications. As a result, pharmaceutical companies are investing heavily in expanding the production capacity of new weight loss drugs, leading to substantial opportunities for contract development and manufacturing organizations (CDMOs). Recent examples of significant healthcare transactions include Novo Holdings’ acquisition of Catalent for $16.5 billion, following in the footsteps of Vertex’s $4.9 billion purchase of Alpine Immune Sciences, Galderma’s IPO, and Biogen’s $7.3 billion acquisition of Reata Pharmaceuticals, all facilitated by Lazard. (Source: Finance.Yahoo.com, “Blackstone likely winner in Hipgnosis Songs battle”, May 9, 2024.)
In another breakthrough, Blackstone, the world’s largest private equity firm, has reportedly raised its offer for Hipgnosis Songs Fund Limited (“Hipgnois”) to $1.30 per share or around $1.57 billion, surpassing Concord’s bid that received support from Hipgnosis’s board. Previously, Hipgnosis initiated a strategic review process last year in response to shareholders voting down the continuation of its fund. The move caused a turbulent period and triggered a disagreement between Hipgnosis and its parent company HSM over a call option. (Source: Finance.Yahoo.com, “Novo Holdings closes Catalent deal”, March 3, 2024.)
In conclusion, the healthcare sector’s role in mergers and acquisitions has remained significant, with the recent appointment of Michele Colocci by Lazard reflecting this trend. Concurrently, other noteworthy developments have emerged, such as Blackstone’s proposed acquisition of Hipgnosis Songs Fund Limited (“Hipgnosis”), surpassing that of rival Concord. Novo Holdings’ acquisition of Catalent for $16.5 billion is also a significant transaction in the healthcare industry. These moves underscore the ongoing dynamism and significance of the healthcare sector in dealmaking.
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