US life sciences sector will take on more tech

Subject

The US life sciences sector.

Significance

The US pharmaceutical company Gilead purchased rights and shares in the Belgian-Dutch firm Galapagos with a 5.1-billion-dollar agreement in mid-July. The move illustrates a trend in the life sciences industry (pharmaceuticals, biotechnology and other sectors based on biological knowledge): the effective outsourcing of research functions through mergers and acquisitions (M&A). Gilead pursued Galapagos, according to reports, for access to its drugs in development and those in its pipeline. However, there are questions about whether this strategy is sufficient for the sector long-term.

Impacts

• Laws or rulings on data or genetic privacy will affect medical-data-reliant life sciences firms, posing shocks.
• This is less likely in the United States, where the industry has considerable lobbying power.
• A major EU data decision could bifurcate the life sciences industry.