Large deals involving pharmaceutical and biotech companies are stalling as executives grapple with mercurial White House economic policies that have roiled markets and set off a global trade war, according to four top healthcare investment bankers.
The excitement late last year over U.S. President Donald Trump’s election victory and prospects for a subsequent flurry of mergers and acquisition deals have quickly faded, they say.
The political uncertainty is pushing some deals out by a few months or even quarters, said the four bankers, who lead healthcare deals at some of the most active U.S. M&A banks.
C-suite meetings scheduled to talk about company valuations and price negotiations are now spent guiding bewildered executives through Trump’s shifting policy moods, whether they directly impact their companies or not.
“They say ‘Gosh, I didn’t see that coming.’ Or, ‘We’re having tariffs, we’re not having tariffs. We’re having tariffs, we’re not having tariffs,'” said one of the top healthcare dealmakers.
“It’s a massive distraction factor for CEOs,” he said. “I try to get off the topic, because what do I have to add to it? It doesn’t get us anywhere.”
He and the other bankers interviewed by Reuters asked not to be identified so they can freely criticize the government without fear of retribution. The White House did not respond to a request for comment.
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