KRS Market Insights: Jul-Dec 2022

In the second half of 2022, an accumulation of economic, political, and global pressures has contributed to heightened uncertainty and market turbulence. In our latest article, we explored the impact on consulting salaries and highlighted how hiring demand has shifted across the life sciences consulting market. While downturns are more visible, there remain clear pockets of growth that have not yet stalled.

M&A Is Not Yet Declining

Despite challenging macroeconomic conditions, the current financial environment remains attractive. Several notable acquisitions have taken place, and many consultancies continue to attract private equity investment. Although transaction volumes have declined compared to the first half of the year, the life sciences consulting market has demonstrated strong resilience, with continued growth across Data & Analytics, MedTech, and Commercial Strategy.

A Message from Kerone Daniel

Reflecting on the second half of the year, we have observed notable shifts in deal activity, hiring trends, and consulting salaries.

Transaction volumes have remained high, with some companies reporting growth of up to 20%, while others have focused on stabilisation and consolidation. At the same time, investment values have decreased, with lower valuation multiples as private equity investors adopt a more cautious approach to return on investment within a typical five-year cycle. This marks a clear shift from the first half of the year, largely driven by broader economic pressures.

From a hiring perspective, many firms have paused headcount growth and reduced hiring volumes. Instead, there is increased emphasis on recruiting strong Engagement Managers who can effectively train and develop junior teams. With reduced demand for volume hiring, companies have reassessed salary bands and prioritised internal equity, placing greater focus on hire quality and realistic salary expectations.

Market Growth

Commercial Strategy & Market Access

Historically, commercial strategy and market access teams have operated in silos. However, closer integration between the two functions is increasingly essential to successful product commercialisation. This trend continues to strengthen year-on-year.

In our 2021 analysis of 30 life science consultancies, we found that 73% of commercial strategy firms launched a market access offering between 2016 and 2021. To remain competitive, consultancies are increasingly pursuing M&A activity to create a “one-stop solution” for biopharmaceutical clients.

Building multidisciplinary teams with both commercial and access expertise allows firms to address a wider range of strategic challenges across the product lifecycle.

Lumanity acquires Clarion Healthcare (November 2022)

‍‍Lumanity has completed several acquisitions throughout the year, bringing together complementary strategic capabilities. These acquisitions have enabled the firm to integrate a broad range of offerings and provide a full-service model for life science clients.

The acquisition of Clarion Healthcare, a strategy consultancy, significantly strengthens Lumanity’s global footprint, particularly in the US, and adds scale across asset-, portfolio-, and enterprise-level strategy. Clarion’s deep scientific and commercial expertise will further support Lumanity’s ability to deliver integrated solutions.

Previous acquisitions of health economics and outcomes research (HEOR) firms, such as BresMed and Endpoint Outcomes, further highlight the intersection between market access and commercialisation within Lumanity’s growth strategy.

Alira Health acquires Artisan Healthcare Consulting (September 2022)

‍‍This acquisition exemplifies how consultancies are enhancing geographic coverage while maintaining aligned service offerings. Artisan Healthcare Consulting, a US-focused consultancy, strengthens Alira Health’s North American presence and reinforces its capabilities in delivering comparable services across regions.

Red Nucleus acquires Jupiter Life Science Consulting (September 2022)

‍‍Red Nucleus, a provider of medical communications, scientific advisory services, and learning and development solutions, expanded its capabilities through the acquisition of Jupiter Life Science Consulting. Jupiter brings expertise in global market access and commercial strategy, supporting pharmaceutical, biotech, and medical device clients across therapeutic areas including neurology, oncology, and rare diseases.

This acquisition further demonstrates how market access and commercialisation increasingly operate together to deliver transformative solutions across the product lifecycle.

Data & Analytics

The velocity and volume of data continue to reshape healthcare innovation and commercial success. Life science consultancies are increasingly positioning commercial analytics as a core capability, delivering robust, data-driven solutions that inform commercial effectiveness, operations, and intelligence.

Data is acquired and leveraged at every stage of the product lifecycle. Many consultancies now operate at the intersection of real-world data, advanced analytics, data science, sales, and channel marketing to transform the healthcare ecosystem through technology-enabled insights.

By applying artificial intelligence, machine learning models, and digital platforms, consultancies are simplifying complex data sets into actionable strategies that can be delivered faster and more efficiently to address unmet industry needs.

Trinity Life Sciences acquires DCube Analytics (July 2022)

‍‍DCube Analytics is an end-to-end data analytics consultancy delivering data-driven commercial strategies for life science companies. Trinity Life Sciences, a global leader in life sciences commercialisation, supports clients across every stage of the product lifecycle.

Through this acquisition, Trinity aligns advanced data science and digital transformation capabilities with its existing commercialisation portfolio. Leveraging DCube’s analytics platform enables Trinity to deliver improved commercial outcomes and accelerate the delivery of life-changing treatments to market.

MedTech Consulting

The MedTech sector continues to face both challenges and opportunities as it undergoes rapid transformation. As healthcare moves toward preventative and personalised medicine, MedTech plays a critical role in improving patient outcomes through diagnostics and technology.

Growth is evident across robotics, automation, wearable technologies, software as a medical device, and digital health. While inorganic growth has been more limited compared to traditional life sciences, demand remains strong and continues to evolve into a profitable area for expansion.

To meet this demand, consultancies are increasingly building specialist MedTech teams capable of delivering tailored strategic solutions. Larger life science consulting firms are expanding their portfolios through dedicated MedTech practices, with firms such as Simon-Kucher, Guidehouse, Clarivate, Evaluate, and Ipsos actively capitalising on the market.

Veranex acquires Medidee (September 2022)

‍‍Veranex, a global end-to-end MedTech provider, supports medical device, diagnostic, precision medicine, digital health, and drug delivery companies. Following its acquisition of Boston Healthcare Associates in 2021 to strengthen market access and strategy capabilities, Veranex acquired Medidee, a leading Swiss-headquartered MedTech consultancy.

This acquisition expands Veranex’s European presence and enhances its ability to deliver full “concept-to-commercialisation” services across the MedTech value chain.

Summary

The acquisitions highlighted above signal continued strength and diversification within the life sciences consulting market. KRS works across Commercial Strategy, Market Access, Data & Analytics, and MedTech, partnering with boutique specialists through to global consultancies.

A Message from Steve Robertson

Looking ahead to 2023, hiring patterns, acquisition activity, and growth trajectories may diverge. Larger firms may remain cautious in early 2023, while specialist consultancies have an opportunity to attract high-quality talent in a less competitive market.

Subscription-based technology consultancies will continue to attract interest due to scalability and recurring revenue models. Across all firms, the clear message remains quality over quantity, with strong Engagement Managers and revenue-generating Partners in highest demand.