As the pharmaceutical market undergoes changes, pharma business services companies continue to expand the breadth and depth of their service offerings.
Valuations in the space continue to rise, with revenue multiples in the public markets currently tracking at a median of 1.2x, and median EBITDA multiples of 12.2x.
Median revenue transaction multiples are higher, at 2.5x while median EBITDA multiples are 9.3x for transactions over the past two years.
Brocair’s index of pharma business services companies has largely tracked the broader S&P index. However, since late 2012, our index has consistently performed above the S&P 500. In the last 12 months, the index reached a 10-year high.
M&A activity in the space has been robust as companies have been trying to strengthen and broaden their capabilities and geographic reach.