Biopharma M&A is the busiest since 2019. M&A lawyer, Matt Gardella, was quoted in The Wall Street Journal article “Biotech M&A Activity Gains Momentum” (August 11, 2023, B10). The article discusses some fundamental factors driving this M&A boom:  (1) big drugmakers are facing a “patent cliff” by 2030 and acquiring biotechs with promising late-stage assets is an important strategy to offset this future revenue loss; (2) public valuations of biotech companies are relatively low, making them attractive M&A targets; (3) the pace of IPOs in the sector has been slow, limiting that alternative for many biotechs; and (4) the potential headwind of increased antitrust scrutiny, as shown by the FTC’s recent lawsuit to block Amgen’s $27.8 billion acquisition of Horizon.

Source

The Wall Street Journal