RE:RE:RE:RE:RE:RE:RE:RE:PwC sees continuation of US$ 5 to 15 Billion Bio M&A Deals“Promising science that addresses unmet medical needs is incredibly valuable, but significant competition for differentiated and de-risked assets remains,” the PwC report said. “A clear and agile approach to evaluating options will therefore be critical in achieving desired outcomes.”
Many biotechs opted for partnerships with bigger companies in 2022. Headlines at the annual J.P. Morgan healthcare conference in January were dominated by big-name pharma licensing deals with smaller biotechs. PwC sees this trend continuing ... the firm is optimistic on the deal outlook for the sector heading into 2023, as balance sheets and cash flow are strong across the industry.
Jefferies Managing Director Michael Yee recently spoke about the future of biotech and pharma during a December 2022 interview with Yahoo.com where he said ...
"Continue to believe (biopharma) is going to be a great place going into 2023, particularly due to the defensive money flow rotation, which you have seen as everybody is fleeing growth, going into recession. Tech stocks, growth stocks, obviously, a tough place to be. So large pharma, large biotech has been a great place to be, a lot of fundamentally good things going on there. And these are great stocks to be right now and going into 2023."
The overall focus now is the number of different patents that are going to roll off-patent with this triggering a heavy CapEx or acquisition spending environment for some of these biotech or biopharma companies as they are about to have a difficult period of the patent exclusivities, at a time when it is very difficult to generate new drugs. [ Advantage Oncolytics Biotech : ONCY / ONC.TO ]
Such independent opinions of managing directors/biotech analysts continue to confirm what has been posted on this message board over the approximately past 6 months in that Big Pharma companies is looking for "bolt-on" M&A deals that fall within their "sweet spot" of between US$5 Billion to US$ 15 Billion.