Seizing the moment: Why now is the ideal time for M&A in UK Pharma & Life Sciences

As highlighted in our latest healthcare reports, the UK pharma and life sciences (PLS) sector enters 2024–25 with strong M&A momentum. A confluence of robust buyer appetite, favourable macro and sector dynamics, and a pro-growth policy environment is creating a uniquely attractive window for dealmaking and fundraising.

 

A Global Standout

The UK has reinforced its position as a global life sciences leader, driven by its deep innovation base, agile regulatory framework, and world-class research infrastructure.

  • Global Standing: The UK ranks among the top three global destinations for life sciences investment, trailing only the US and China. In 2024 alone, it attracted over £3.5bn in biotech and medtech VC funding. 
  • Innovation Hubs: Over 80% of this capital is concentrated in the Golden Triangle (London–Oxford–Cambridge), home to four of the world’s top 10 universities and more than 250,000 life sciences jobs.
  • Economic Impact: The sector contributes over £94bn to the UK economy annually, including £34bn in core GVA, and accounts for 20% of all UK business R&D spend.
  • Regulatory Advantage: The MHRA continues to be one of Europe’s most innovation-friendly regulators, supporting accelerated clinical trial approvals and faster commercialisation.
  • Global Innovation Rankings: UK multinationals such as AstraZeneca and GSK continue to climb global innovation indices, signalling sustained competitiveness.

 

Geopolitical Backdrop
The UK’s global position in PLS is being significantly reinforced by evolving trade relationships and international policy shifts:

  • Trade Agreements as Catalysts for Growth: Recent agreements with the EU and India mark a pivotal step toward streamlined regulatory access and reduced trade barriers for UK pharma exports. These deals, particularly supportive of generics and specialty medicines, position the UK as a critical export hub—linking the innovation ecosystems of Europe, the cost-efficiencies of Asia, and the commercial scale of North America.
  • US Drug Pricing Reform as an Opportunity: Reform proposals from both Donald Trump and RFK Jr. aimed at disrupting US drug pricing structures, specifically the influence of Pharmacy Benefit Managers, are likely to increase demand for lower-cost, high-quality drug supply chains. This presents a major opportunity for UK-based generics producers and CDMOs, already trusted for quality and cost competitiveness, to gain traction with US buyers seeking transparent, efficient sourcing partners.
  • A Strategic Bridge for Global Innovation: As the UK shapes an independent regulatory framework post-Brexit and deepens bilateral ties with global markets, it is uniquely placed to act as a strategic conduit for life sciences trade and collaboration. This emerging role, as a bridge between Atlantic innovation and Asian manufacturing, enhances its attractiveness for global pharma investors and partners alike.

 

Buyer Criteria

Strategic buyers and private equity firms, both domestic and international, are targeting resilient, scalable, and innovative assets. These businesses offer not just growth but also platform potential and consolidation opportunities.

 

Clinical Research & Manufacturing (CRO/CDMO)

Buy-Side Focus: Niche CROs and CDMOs offering clinical trial services, lab analytics, or specialist and sterile manufacturing.

Why They’re Attractive: The global trend toward R&D outsourcing is driving demand for recurring, project-based, and manufacturing revenues.

Recent Deals:

  • Nov 2024 – Charnwood Molecular Ltd acquired by Concept Life Sciences Ltd
  • Oct 2024 – Alderley Analytical Ltd acquired by Synexa Life Sciences B.V.
  • Feb 2024 – Clinicology Ltd acquired by FGK Clinical Research GmbH

 

OTC & Consumer Health

Buy-Side Focus: Supplements, OTC brands, skincare, and wellness products.

Why They’re Attractive: Brand equity, stable cash flows, and global scalability underpin investor appetite.

Recent Deals:

  • Jan 2025 – Alliance Pharma plc acquired by its largest shareholder for £362m (EV/EBITDA: 11.4x | EV/Revenue: 2.3x)
  • Sep 2023 – Vitality CBD Ltd acquired by Psilobrain Therapeutics Inc. for £2m
  • Jun 2023 – Lucis Pharma Ltd acquired by Rosemont Pharmaceuticals

Continued public-to-private transactions suggest that listed UK health assets remain undervalued, an ongoing theme driving PE interest and delistings.

 

Animal Health & Veterinary Services

Buy-Side Focus: Vet practices, diagnostics labs, and pet wellness brands.

Why They’re Attractive: Market fragmentation and rising pet care expenditure support consolidation strategies.

Recent Deals:

  • Mar 2025 – Summit Veterinary Pharmaceuticals Ltd acquired by Swedencare AB for £45m (EV/Revenue: 16.6x)
  • Nov 2024 – Benchmark Genetics Ltd acquired by Novo Holdings for £260m (EV/EBITDA: 17.9x | EV/Revenue: 4.6x)
  • Sep 2024 – Drayton Animal Health Ltd acquired by Celnor Group
  • Jul 2024 – Lintbells Ltd acquired by Vetnique Labs LLC

 

Life Science Tools & Reagents

Buy-Side Focus: Genomics, proteomics, automation platforms, lab consumables.

Why They’re Attractive: Strong IP, high margins, and sticky customer bases.

Recent Deals:

  • Apr 2025 - Siemens acquired Dotmatics to extend its AI-powered software portfolio to Life Sciences for £3.78bn.
  • Oct 2024 – Bio-Tech Solutions Ltd acquired by SkinBioTherapeutics for £1m
  • Sep 2024 – Gentronix Ltd acquired by Scantox UK
  • Aug 2023 – Abcam plc acquired by Danaher for £4.68bn (EV/EBITDA: 41.8x | EV/Revenue: 12.9x)

 

Generics & Specialty Pharma

Buy-Side Focus: Off-patent drug portfolios, sterile injectables, and niche therapeutics.

Why They’re Attractive: Steady cash flows and cost-focused innovation appeal in today’s value-driven healthcare landscape.

Recent Deals:

  • Mar 2025 – Oncogeni Ltd acquired for £9m
  • Sep 2024 – A&S Pharma Holdings Ltd acquired by Farmak Pharmaceuticals UK Ltd
  • Jul 2024 – Qualasept Pharmaxo Holdings Ltd acquired by Integrated Clinical Oncology Network
  • Jun 2023 – Theragnostics Ltd acquired by Ariceum Therapeutics for £36m

Trump and RFK Jr’s “no middleman” drug price strategy could open the door for UK-based generics firms to supply the US market more competitively, especially given the UK’s already low drug pricing infrastructure. This presents an opportunity for UK manufacturers and exporters to target high-volume US distribution channels.

 

Distribution & Supply Chain Services

Buy-Side Focus: Cold chain logistics, regulatory distribution, and digitally enabled supply networks.

Why They’re Attractive: As therapy formats become more complex, vertically integrated, tech-enabled supply partners are essential.

Recent Activity:

  • Phoenix Group and Alliance Healthcare continue national consolidation.
  • Uniphar deepens UK exposure via bolt-ons.

This dynamic presents a compelling opportunity for consolidation, as strategic players increasingly seek to acquire and integrate distribution capabilities to control the full value chain, from manufacturing to last-mile delivery.

 

Fuel for Growth: Policy, Capital & Infrastructure

The UK government continues to position life sciences as a pillar of its industrial and innovation strategy.

  • Innovation Zones: Liverpool led the rollout of Life Sciences Investment Zones in 2023, with more to follow. The programme is expected to unlock £800m+ in investment and generate 8,000 new jobs.
  • R&D Tax & Grant Funding: R&D tax relief remains highly attractive for both SMEs and large corporates. Funds like the Medicines and Diagnostics Manufacturing Transformation Fund offer targeted capital.
  • Real Estate: Purpose-built lab space in key hubs (e.g. Birmingham, Manchester, Edinburgh) is easing capacity constraints and attracting anchor tenants.
  • Budget 2024–25: The UK allocated £20.4bn to R&D, including a £520m Life Sciences Manufacturing Fund to support advanced therapies and decentralised clinical trials.
  • Trade Implications: The UK’s growing network of bilateral deals, notably with India and the EU, could significantly enhance pharma and biotech market access, regulatory harmonisation, and cross-border capital flows.

 

Why Now Is the Right Time

A convergence of deal-friendly dynamics makes 2024–25 an ideal moment for exits, M&A, and funding rounds.

  • Strong Buyer Demand: Both PE and strategic buyers are deploying capital into innovation-driven growth platforms.
  • Favourable Valuations: High-multiple outcomes are achievable, especially for firms with proprietary IP, recurring revenues, and clear scaling potential.
  • Supportive Policy: The UK’s alignment of industrial, health, and trade policy creates one of the most supportive global environments for life sciences.
  • Global Positioning: With strategic trade deals across the EU, India, and a favourable position for US market entry, the UK is ideally situated as a life sciences gateway across three continents.