THE DUTCH LEGAL LANDSCAPE FOR THE HEALTHCARE AND LIFE SCIENCES SECTORS

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1 THE DUTCH LEGAL LANDSCAPE FOR THE HEALTHCARE AND LIFE SCIENCES SECTORS EMA to relocate to Amsterdam what will be the business opportunities for Dutch law firms? 1 Amsterdam, 14 December 2017

2 GENERAL OVERVIEW: THE DUTCH LEGAL LANDSCAPE FOR THE HEALTHCARE AND LIFE SCIENCES SECTORS In 2019 the European Medicines Agency (EMA) moves to Amsterdam. An economic boost for the city of Amsterdam, almost 900 highly skilled employees, 36,000 visitors per year; what are the business opportunities for Dutch law firms. In this sector update Venturis Consulting Group provides an overview of the legal market regarding the Healthcare and Life Sciences sectors. 21 Dutch law firms are ranked in Chambers Europe 2017 for either their Life Sciences, Healthcare and/or their Intellectual Property: Patent-practice; there are just 5 niche-boutique firms, however, with an average band of 1.7 these firms play a significant role in this growth market and in terms of reputation outperform national independents and several of the Anglo-Saxon firms (with an average band of 2.5). Out of the 7 law firms ranked for their Life Sciences practice there are 3 niche-boutique firms (Hoyng Rokh Monegier, Axon Lawyers and Leijnse Artz) with an average band of 1.7, against 2.7 for the entire group of firms ranked for their Life Sciences practice. All law firms ranked for their Healthcare practice are in terms of number of lawyers Top 50 firms; none of them has an additional ranking for either their Life Sciences and/or Intellectual Property: Patent-practice. Hoyng Rokh Monegier and Hogan Lovells are the only firms with 2 top tier rankings, both for Life Sciences and Intellectual Property: Patent. The national independents and Anglo-Saxon firms are the main players for M&A deals in the Healthcare and Life Sciences sectors, both in number of deals and deal value; with a remarkable position, however, for the niche-boutique firm Axon Lawyers. Van Doorne and Loyens & Loeff are the only two national independent firms that seem to have managed to align their reputation and their M&A deal flow (both in number of deals and deal value) in the Life Sciences and Healthcare sectors. There are a number of firms with corporate / M&A capabilities and ranked for their Life Sciences, Healthcare and/or their Intellectual Property: Patentpractice, but that apparently are not involved M&A deals in the Life Sciences and Healthcare sectors. On the other hand, there are also a number of law firms that have a (significant) M&A deal track record in the Life Sciences and Healthcare sectors, but that have no or are not ranked for their Life Sciences, Healthcare and/or their Intellectual Property: Patent-practice. The M&A transaction market up to 1 billion (in deal value) is highly competitive; there is a wide-range of firms without a clear strategy and positioning in the Healthcare and Life Sciences sectors. 2 Sources: Chambers Europe 2017, Legal500 and MenA.nl. Analysis by Venturis Consulting Group

3 THE REPUTATION INDEX FOR THE HEALTHCARE AND LIFE SCIENCES SECTORS What will be Your Firm s and/or Practice Group s main Differentiator? Number of Fee-Earners Allen & Overy NautaDutilh De Brauw Blackstone Westbroek AKD CMS Pels Rijcken Droogleever Fortuijn Loyens & Loeff Freshfields Bruckhaus Deringer Van Doorne Dirkzwager Nysingh Advocaten 100 Kennedy Van der Laan Bird and Bird Simmons and Simmons Hogan Lovells BarentsKrans Vondst Advocaten Brinkhof Leijnse Artz Axon Advocaten 0 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 Chambers Europe 2017 ( Band) Legend Ranking in Chambers Europe 2017 Life Sciences Healthcare Intellectual Property: Patent Life Sciences & Intellectual Property: Patent Legal500 (Healthcare & Life Sciences) Explanatory Note The average band score of each firm is based on its rankings in Chambers Europe 2017 regarding their Life Sciences, Healthcare and/or Intellectual Property: Patent-practice group. The number of fee-earners is based on Chambers Europe Sources: Chambers Europe 2017, Legal500 and MenA.nl. Analysis by Venturis Consulting Group Hoyng Rokh Monegier 3

4 THE LEGAL DEALMAKERS IN THE HEALTHCARE AND LIFE SCIENCES SECTORS A Significant Number of the Legal Dealmakers are Not Known for their Healthcare and Life Sciences-practices De Brauw Blackstone Westbroek Allen & Overy NautaDutilh Legend Ranking in Chambers Europe 2017 Life Sciences Healthcare Deal Value billion Clifford Chance Stibbe CMS Rutgers & Posch AKD Van Doorne Loyens & Loeff De Breij Evers Boon INGEN HOUSZ Deals Deal Value billion 1,0 0,8 0,6 0,4 0,2 0,0 Freshfields Bruckhaus Deringer The M&A deal data in this report is based on submitted deals for the sectors: Pharma; Medical & Biotech; and Healthcare & Pharmaceuticals between January 2015 and November 2017 at MenA.nl; analysis by Venturis Consulting Group. Sources: Chambers Europe 2017, Legal500 and MenA.nl. Analysis by Venturis Consulting Group Intellectual Property: Patent Life Sciences & Intellectual Property: Patent No ranking for the practice groups above Legal500 (Healthcare & Life Sciences) Osborne Clarke Jones Day Kennedy Van der Laan Eversheds Sutherland Axon Advocaten Simmons & Simmons West Advocaten Hogan Lovells HVG Law Houthoff Maverick Advocaten Haagstate Advocaten Schut van de Ven Lexence Deals Explanatory Note

5 THE RELATIONSHIP BETWEEN DEAL FLOW AND REPUTATION IN THE HEALTHCARE AND LIFE SCIENCES SECTORS Firms Should Align their Expertise, Reputation and Corporate / M&A practice 20 NautaDutilh 18 Legend Million 500 Million 1 Billion 1 50 Billion Billion Allen & Overy Loyens & Loeff Legal500 (Healthcare & Life Sciences) Explanatory Note Number of Deals CMS AKD De Brauw Blackstone Westbroek Axon Advocaten Simmons & Simmons Van Doorne Hogan Lovells The average band score of each firm is based on its rankings in Chambers Europe 2017 regarding their Life Sciences, Healthcare and/or Intellectual Property: Patent-practice group. The M&A deal data in this report is based on submitted deals for the sectors: Pharma; Medical & Biotech; and Healthcare & Pharmaceuticals between January 2015 and November 2017 at MenA.nl. Sources: Chambers Europe 2017, Legal500 and MenA.nl Analysis by Venturis Consulting Group Legal 500-only dealmakers 2 Kennedy Van der Laan Freshfields Bruckhaus Deringer 0 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 Chambers Europe 2017 ( Band) Stibbe Clifford Chance Houthoff Maverick Advocaten 8 deals 4 deals 4 deals 3 deals 5

6 WHAT IS THE NEXT STEP FOR DUTCH LAW FIRMS AND THEIR HEALTHCARE AND LIFE SCIENCES PRACTICES? It s Fundamental to Define Your Firm s and Practice Group s Strategic Fit in the Market Many of the firms that have a (strong) position in the M&A transaction market in the Healthcare and Life Sciences sectors have no or are not known for their Healthcare and Life Sciences practices; for these firms it could be a strategic business opportunity to develop an in-depth sector strategy. We have also seen a number of firms that have the expertise and reputation regarding their Healthcare and Life Sciences practices, but are primarily and apparently just known for a specific legal expertise. These firms should leverage their current expertise and reputation in the Healthcare and/or Life Sciences sectors by expanding capabilities and their product portfolio. With the relocation of EMA to Amsterdam, the Netherlands could become one of the hot spots for new business in the Biotech, Healthcare and Pharmaceuticals sectors. What are the Foreign Direct Investments (FDI-analysis) in relation to these sectors? Who are the main (international) players in these sectors? It could be very interesting for Dutch law firms to develop a(n) (international) referral strategy. Finally, firms and their Healthcare and Life Sciences-practice groups should consider to invest in business support functions (business development & marketing, legal tech, business intelligence). General counsels are more business minded and have a better view of the market than previous generations; they are better at picking the real strengths of firms and do not subscribe to the full service concept, however, they expect deep sector knowledge and have higher service expectations. 6

7 WHO WE ARE Venturis Consulting Group is a leading management-strategy consulting firm for the legal sector with offices in Amsterdam, London, Milan, Munich, New York, Miami and Mexico City. Venturis acts as a trusted advisor in the design, facilitation and execution of complex strategic and organizational initiatives facing the legal industry. We help the management of sophisticated law firms worldwide to respond to changing market and competitive dynamics, establish powerful market positions and achieve superior performance. Our advice and research-based insights have been tested and shaped through many years of experience in driving strategic and high impact bet the firm change and transformation processes. Our services are organized into three practice groups; 1) Strategy & Positioning; 2) People & Organization; and 3) Strategy Execution All our partners and consultants have advised and/or worked for leading global law firms in leadership positions. Most of our partners are active in the academic world and are alumni of the world s top strategy consultancies and business management schools. These broad skill sets, experience and a proven track-record allow us to assemble the best possible team to meet the specific needs of our clients. 7

8 WHAT WE DO 1 Strategy 2 People & Organization 3 Strategy Execution Strategy is the creation of a unique and valuable position for the firm based on an analysis of the legal industry/markets in which a firm operates and an analysis of its competitive positioning. It requires you to make trade-offs in competing to choose what not to do. Strategy involves creating a sustainable fit among a firm s activities, preserving what is distinctive about a firm. Our advisory services focus on the organizational design and human capabilities of a firm and in particular on aligning strategies for recruiting, developing and retaining talent, taking into account each firm s unique history, culture and leadership style. Implementation of strategic initiatives in law firms is challenging. Based on a detailed assessment of goals, capabilities and available resources, we work with our clients to develop tailor-made execution programs to achieve sustainable and measurable results. We help our clients to develop leadership, execute transformation processes and optimize management practices. 8

9 ROBERT VAN BEEMEN Robert s main focus within Venturis Consulting Group is advising niche and boutique law firms in Europe on their strategic challenges, such as market positioning, international (referral) strategies and market entries. As a former Lehman Brothers bankruptcy trustee, he has a broad and unique experience in managing complex projects and engaging law firms worldwide as clients, that provides him with powerful experience-based insights about how the legal sector can enhance service delivery and improve value. Robert holds an LLM in corporate law from the University of Utrecht (2006). He is an alumni of the Rotterdam School of Management, Erasmus University in Rotterdam, where he followed the Diploma Programme in Business Management & Leadership (2015) and the Erasmus Executive Programme in Strategic Management (2016). Robert regularly speaks about the strategic challenges and opportunities for law firms regarding Legal Tech at international conferences (AIJA and UIA). For more information: robert.van.beemen@venturisconsulting.com +31 (0) JULES SPAAN Jules is a business analyst and involved in the Research & Analysis projects of Venturis Consulting Group. He received his Bachelor of Business Administration (BBA) from UAS Leiden in In 2014 Jules went to Gediz Üniversitesi in Izmir (Turkey) deepening his studies in International Business. He finished his studies in Turkey with an essay about Corporate Social Responsibility and Innovation in the annual International Students Conference at Ege University. Jules is involved in (international) strategy projects, such as mergers and strategic reviews. His research projects of the reputation index and M&A deal flows for the Dutch legal market are regularly published in Elsevier magazine. For more information: jules.spaan@venturisconsulting.com +31 (0)