Clifford Chance

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The healthcare sector is an attractive arena for private equity funds and other associated financial investors. Investors can profit from a stable market as an aging population consumes more healthcare products and services in most parts of the world. The sector consists of different industry branches which all have their attractive dynamics individual challenges.

Our dedicated Healthcare, Life Sciences and Chemicals M&A Group leads complex M&A transactions for global and local clients and can help you understanding different markets and the challenges arising in this highly regulated industry. It is only possible to offer clients the best legal advice by having a deep understanding of the industry, the business and the unique commercial drivers that affect them. Our commitment in this area is recognized by clients and independent observers. Based on our in-depth experience you receive insights into the key factors for commercial success in the different segments of the following sectors:

  • Pharmaceutical companies: The pharmaceutical industry profits from stable or even rising demand for healthcare products. In addition, new markets are introduced (advanced therapies, biologic products etc.) and lead to new opportunities in this sector. However, the industry faces market challenges such as weak pipelines and expiring patents forcing inorganic growth strategies
  • Medical device companies: The medical device industry in particular faces uncertainties with respect to the regulatory environment in the EU. The draft regulations replacing the current legal framework will lead to a tightening of regulatory requirements for medical devices in the European market. In addition, the industry faces pricing pressures from health insurance, funds and tightening government budgets and needs to further adapt to high compliance standards vis-à-vis healthcare professionals
  • Healthcare providers and service industry bodies (such as hospitals, nursing homes and laboratories): Healthcare providers face slow revenue growth and uncertainties result from reforms and the general economy. This leads hospitals and healthcare providers to cut expenses and increase efficiency or to consolidate in the hope of streamlining operations and gaining pull with the industry players. As strategic mergers and acquisitions in the sector continue, private equity firms are positioning themselves to capitalize on this industry in transition
  • Chemical companies: the chemicals sector unrelentingly focuses on value creation, driven by competition for capital and investors, or the possibility of a private equity take-over

Client experience

  • Cinven on its acquisition of pan European laboratories business, synlab from BC Partners for approximately EUR1.7 billion
  • Bank of America Merrill Lynch and Piper Jaffray in connection with the $138 million U.S. IPO of Tandem Diabetes Care Inc., a medical device company
  • European financial investor Chequers Capital, Paris, on the acquisition of Deutsche Fachpflege Holding and the related financing. Deutsche Fachpflege Holding, Munich, offers out-of-clinic intensive care via seven subsidiaries to patients in various German federal states
  • Deutsche Bank on the restructuring and sale of the Swiss drug maker to Watson Pharmaceuticals for up to €4.5
  • Montagu Private Equity on the acquisition of BSN medical, the joint venture between Smith & Nephew and Beiersdorf in the fields of wound care, orthopaedics and phlebology, as well as subsequent add-ons
  • Triton on the acquisition of a 17% stake in Curanum AG, the listed German nursing home operator
  • European private equity firm, Cinven on its acquisition of Mercury Pharma, the international speciality pharmaceutical company, for £465 million
  • 3i on the acquisition of Lichtwer Pharma AG, Berlin
  • IK Investment Partners on the sale of the Welzorg Group, a leading distributor of mobility aids for elderly and disabled people in the Netherlands, Denmark and Sweden, to the Louwman Group
  • Mediterranean & Gulf General Insurance and Reinsurance Company (MedGulf) BSC in relation to International Financial Corporation's equity investment of approximately US$124 million to acquire a stake of approximately 14% in MedGulf

Directory listings and client comments

  • Notable European coverage and a strong presence in Asia. Its team of specialists advise on the full range of life sciences-related matters including regulatory, competition and transactional issues. Advises pharmaceutical, medical device and healthcare organisations and is regularly engaged in cross-border matters.

    Strengths Interviewees acknowledge the firm's corporate strength. They say: "They are one of the few law firms that have a high degree of specialisation in transactional life sciences work." 

    Further sources highlight the "excellent cross-border capabilities" offered by the firm.

    Chambers Global Life Sciences 2017