PATRICIA VAN ARNUM
DCAT Editorial Director, USA

Abstract

What will be the key trends shaping the pharmaceutical industry in 2018? Top issues to watch for in 2018 include: mergers and acquisitions (M&A), driven in part by US tax reform, continued strength in venture-capital funding, and further product innovation following a 21-year high in US FDA approvals of new molecular entities in 2017.

From increased mergers and acquisitions (M&A), driven in part by US tax reform, to continued strength in venture capital funding, 2018 is expected to see increased M&A activity and continued strength from both private and public financing. What else may be in store?

TOP 10 ISSUES FOR 2018

1. Mergers and acquisitions in 2018. Led by a bullish stock market and US corporate tax form, some analysts are projecting a robust year in 2018 for mergers and acquisitions (M&A). According to EP Vantage, the editorial arm of Evaluate Ltd., 2018 could be a strong year for M&A in the pharmaceutical industry driven by both Big Pharma’s and Big Biotech’s need to restock and strengthen pipelines.

In terms of M&A, corporate taxation was a major impetus behind several recent high-profile deals that were in part sought for financial reasons to achieve an improved tax position through corporate inversion. A corporate inversion occurs when a US-based multinational corporation restructures itself so that the US parent is replaced by a foreign parent and the original US company becomes a subsidiary of ...