RE:RE:RE:RE:PwC sees continuation of US$ 5 to 15 Billion Bio M&A DealsAdding to the higer acquisition valuations is that Mizuho Securities believes that for biotech, the “worst days from the recent two-year correction are now likely behind it.” The industry has never seen three consecutive years of negative returns, and Mizuho does not expect 2023 to rewrite history. The analyst firm says this is the second longest and deepest downturn in history, second only to the genomics bubble of 2001.
A silver lining of the rocky climate is more selectivity, and companies with differentiated technologies will prosper, according to Poseida Therapeutics CEO Mark Gergen. Gergen thinks the new year will bring biotech deals, partnerships and mergers/acquisitions.
PwC predicts that strategic realignments and portfolio management will continue into 2023. “Companies will need to adhere to a clear playbook to deliver the desired outcomes. Prepared and proactive management teams willing to consider both acquisitions and divestitures will be best positioned to deliver superior returns,” the consulting firm said in a new report on M&A. Swift decision making will also be key to value creation.