The latest insights on M&A activity in life sciences commercial vendors
As part of our LINX bio-pharma vendor review, Zensights is pleased to share an update on merger activity to help our ZEN members understand the market activity that may impact their supplier relationships.
Key M&A highlights in Q2 2024
✓ Merger activity continues into the new year but at a slower pace. In the second quarter of 2024, merger activity continued, with five acquisitions identified within the markets we monitor for our clients. This volume has been trending down from previous periods and has been below the average volume over the past two years. It is the same volume as the same period the prior year, so possibly Q2 is generally down compared to other quarters. We’ll be monitoring the markets into future quarters to assess if this is a general slowdown, or regular cyclical behavior.
✓ Expanded capability and consolidation seem to be the drivers of deal activity in Q2. Announced deals combine generalized health-related PR offerings with medical communications and omnichannel capabilities, suggesting that clients expect more comprehensive offerings and are less interested in coordinating capabilities themselves.
✓ Several of the deals announced brought non-healthcare capabilities together with healthcare-specific suppliers. This continues a trend that has been occurring over a number of years, with mixed long-term success for the acquirers.
✓ While some of the companies involved in acquiring or being acquired have PE backing, the number of PE-instigated deals has reduced. This suggests that the PE firms that have been very active over the past few years are still integrating and absorbing their prior acquisitions – or turning their attention to the exits of previously acquired firms.
2024 Q2 Activity highlights
In the second quarter of 2024, M&A activity continued into the new year with five deals identified in the firms we monitor for our clients. The following deals were identified:
1. CG Life acquires Toolhouse (April 2024)
CG Life has expanded its ability to support commercial life science organizations with digital omnichannel strategies through the addition of Toolhouse. Previously, the agency supported clients with a blend of strategy, creative, marketing, digital, and media with science and now has expanded its offering with omnichannel capability.
CG Life’s CEO David Ormesher stated that “Healthcare has changed dramatically, requiring brand leaders in biopharma and life science to deploy nimble, omnichannel digital strategies to connect with their audiences… We are addressing this need by combining Toolhouse’s broad digital expertise with CG Life’s deep understanding of scientific and medical content and audiences. Together, through our expanded capabilities in strategy, insight, technology, and creativity, we will enable leading pharma, biotech, and life sciences companies to build meaningful connections with patients and physicians.”
2. Hahn acquires MedVoice PR (April 2024)
Predictive marketing and PR agency Hahn has acquired health communications agency MedVoice PR. The agency communicated that MedVoice will add health specialties to Hahn’s food and beverage portfolio.
Jen Cannon, Managing Director of the practice group explained, “Our food and beverage clients are increasingly interested in promoting the health attributes of their offerings. MedVoice PR’s expertise in health communications is the amplifier we’ll use to help clients better connect to nutrition-conscious audiences.”
3. CG Life also acquires Berry & Company Public Relations (May 2024)
CG Life has also acquired Berry & Company Public Relations, a New York City-based public relations agency focused on service to life sciences and medical technology companies. The acquisition significantly expands the range of CG Life communications expertise and services to support clients in the biopharma and medical sectors.
Berry & Company is a specialized PR firm with a focus on healthcare communications. The agency provides a complete range of public relations services to clients, including traditional and sponsored media, social media strategy and execution, content development, issues management, and crisis communications with expertise across a range of therapeutic areas, including rare diseases, oncology, immunology, neurological diseases, and orthopedic surgery.
CG Life’s CEO David Ormesher communicated, “We are continuing to execute our vision to build the premier science-first, technology-enabled omnichannel healthcare communications agency. The combined expertise of CG Life, Toolhouse, and Berry & Company positions us to deliver a more comprehensive range of services and deep expertise to deliver positive results for leaders in pharma, life science, and healthcare technology.”
4. JPA Health acquires BioCentric (May 2024)
JPA Health, a global full-service, integrated health agency, announced the acquisition of BioCentric, Inc., an award-winning medical communications agency. JPA Health communicated that BioCentric is recognized for its work with leading pharmaceutical companies, supporting them with scientific platforms for pipeline product candidates, clinical trial acceleration, and HCP engagement.
BioCentric will serve as JPA Health’s medical communications and learning experiences arm, leveraging its innovative serious games and gamification approach to enhance engagements, capture meaningful insights, and drive positive behavior change. Sherine Aly, who founded BioCentric in 2001, will continue to lead the division, ensuring clients receive exceptional scientific communications solutions. BioCentric has offices in the US and Switzerland.
5. Deerfield buys ad firm Embedded, bringing three agencies together (June 2024)
Deerfield Agency bought Embedded, a New Jersey-based healthcare marketing and advertising firm. Embedded will be folded under the Deerfield Group brand. Frank Burrell, the CEO of Deerfield Group, reported that this acquisition brings together complementary capabilities for its health and life sciences clients.
The agency, which has backing from private equity firm Edgewater Growth Capital Partners IV, views the acquisition as a way to bolster its strategic services capability with the Embedded offerings which are focused on brand strategy.
Two years after Deerfield acquired Verge Scientific, which primarily serves biotech startups, early-stage pharma companies, and consumer science brands, Burrell said the agency is now focused on uniting the three entities under one umbrella to streamline its services.