More than thirty leading organizations from across the life sciences today launched the Partnership for the U.S. Life Science Ecosystem (PULSE), a coalition to raise awareness of the fundamental role of pro-innovation mergers and acquisitions (M&A) in advancing the next generation of treatments and cures for patients.
The U.S. is home to thousands of life sciences and biopharmaceutical companies, comprising one of the most diverse and highly competitive industries worldwide. Life sciences companies of all sizes engage in M&A to achieve broad, efficient allocation of resources and expertise that are essential to stay in operation and navigate the complex regulatory, reimbursement and distribution systems within the biopharmaceutical market. Pro-innovation M&A offers an indispensable bridge that helps shepherd early discoveries into the lifesaving treatments and cures needed for patients.
Policymakers, regulators and the courts have long recognized the unique aspects of the life sciences industry, including the differentiated and vital role that pro-innovation M&A plays within it. On average, it takes 10-15 years and costs $2.6 billion to develop and bring a new medicine to patients, including the cost of the many failures along the way. Only 12 percent of new molecular entities that enter clinical trials eventually receive U.S. Food and Drug Administration (FDA) approval.
Even when a medicine or treatment receives regulatory approval, the competition that exists – between innovative products already on the market, emerging new therapies in development and, eventually generic and biosimilar competition – all contribute to America’s life sciences ecosystem being one of the most competitive industries in the world.
Recently, the Federal Trade Commission (FTC) articulated a new approach to antitrust enforcement that runs counter to long-standing precedent that has guided pro-innovation M&A for decades. If continued, the FTC’s flawed approach to M&A review and enforcement would undermine the dynamic ecosystem responsible for many of the world’s most innovative and important treatments. Deterring pro-innovation M&A would obstruct the many complementary relationships across the life sciences ecosystem, stalling treatments and cures for patients while risking jobs, wages and economic growth in every state.
PULSE members – representing frontline researchers, employees, and leaders of life sciences companies of all sizes – will collectively highlight the importance of shared efficiencies and expertise that companies leverage across the development process through M&A to make sure patients receive lifesaving treatments as quickly as possible. PULSE members will also provide real-world insight into the economic importance and benefits of M&A within local communities and to broader growth and development.
A full list of partners is included here pulseforinnovation.org/partners.