RE:RE:RE:RE:RE:Big pharma is set to keep signing bigger deals in 2024 Pharma companies beef up oncology pipelines
Pharmaceutical companies have taken advantage of favorable valuations in the biotech sector to pursue opportunistic purchases. And they have the resources at hand, drawing on deep cash reserves amassed during COVID-19, estimated at US$1.4 trillion as of December 2023.
Several drugs lost their primary patents at the end of last year, and the “patent cliff” continues to threaten large drugmakers. As patent expiries draw closer, M&A is becoming a vital tool for pharma companies looking to bulk up near-term revenue and strengthen drug pipelines.
Outlook
Looking ahead, innovation in oncology looks set to ramp up even further. Exponential growth in demand will provide a steady stream of new assets coming to market, presenting prime deal opportunities for pharmaceutical companies and private investors alike.
The industry’s drive to snap up oncology targets shows no sign of slowing down. Oncology drugs are among the most profitable in the market, and pharma companies will be looking to replenish lost revenue streams in anticipation of impending patent expirations.
With these strong market tailwinds, dealmaking targeting oncology assets will be an exciting space to watch.
https://www.jdsupra.com/legalnews/oncology-dealmaking-fuels-biotech-m-a-8417326/