2021 Corporate Governance Trends — U.S. Biopharmaceutical Industry

Sullivan & Cromwell LLP - June 2021



Corporate governance issues are of critical importance to large investors evaluating investment opportunities. Mega-cap companies in the biopharmaceutical space (>$75B market cap) have aligned their governance structures to best practices across the S&P 500. Although not far behind mega-cap peers in many respects, large-cap biopharmaceutical companies ($10B to $45B market cap) have occasionally lagged in adopting those trends.

Every biopharmaceutical company should adopt a governance model that aligns with its particular characteristics, including its scientific prospects, board composition, investor base, innovation platform, commercialization program and long-term strategic objectives. Although broader industry trends are informative, companies should only evolve and develop their governance practices after engaging in deliberate conversations with directors, investors and other key stakeholders.

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