Rethinking Investments and Growth in Life Science Services
For years, investors in Life Science support services had a clear formula for success: buy, integrate, scale, exit. And there were some very notable successes — at first. But today, that strategy is no longer delivering the same outcomes.
The market was fragmented from both a services and geographic perspective, the targets were plentiful, and synergies were able to be realised, delivering handsome multiples. From regulatory and compliance to clinical development and market access, the “buy-and-build” strategy seemed unstoppable.
The End of an Era
Today, most of the exciting acquisition targets are gone, with the remaining targets coming with eye-watering valuations based on yesterday’s promise. Integrations have become complex, slow, and culture-draining. Instead of agility and innovation, larger groups are now wrestling with inefficiency and inertia.
Scale has stopped being a shortcut to value. Instead, investors are increasingly recognising that being bigger isn’t the same as being better.
Data, Technology, and Insight are the new Growth Currencies
Meanwhile, Life Science Services are being transformed by AI, automation, and digital platforms. The real value now lies in data and how it is used to accelerate development, improve compliance, and create smarter insights for clients.
Companies that can turn technology into tangible outcomes are becoming the new high-value assets.
Meanwhile, clients — especially big pharma and biotech — are no longer impressed by headcount. They want partners who bring digital tools, automation, and intelligence to the table.
Unlocking Innovation will be Key
Investors should be asking: how can we use capital to unlock innovation?
That may mean supporting a regulatory services firm to build an AI-enabled submissions platform, instead of buying and integrating five competitors. Or supporting a clinical services provider to invest in predictive analytics that open new revenue streams.
These are the kinds of moves that create real differentiation — without the drag of endless integration and diminishing returns.
The New Value Equation
Tomorrow’s investors will judge success differently. They’ll look for:
Technology enablement and IP — proprietary platforms and data assets
Innovation — evidence of faster, smarter, more compliant delivery
Client integration — embedded, data-driven partnerships
Scalable digital infrastructure — systems that sustain growth, not strain it
It is no longer a matter of size and scale. It is no longer about owning more companies. Instead, the future winners will be the ones who create value through being smarter and faster, powered by innovation.