CRO Sector Update: June 2020

Kunal Kadiwar, Lois Groden

The impact of COVID-19 on M&A and valuations in the CRO sector
Unsurprisingly, the CRO market, like many other sectors has been impacted markedly by the global pandemic. Global trials have been suspended as patient recruitment has become strained and operating sites closed. Pharma sponsors have begun to rethink how to adapt the drug development paradigm to align with the new reality.

The impact on Q1-20 results has varied significantly depending on therapeutic and development stage exposure. M&A activity has continued at pace and valuations remain robust even in the face of recent market volatility. There is consensus that Q2 will be critical to understanding the full extent of the impact and defining trajectory in the medium-term.

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To read an in-depth analysis of M&A activity and valuations in the sector over recent years, read our white paper here.