Oncolytics Biotech Inc T.ONC

Big pharma is set to keep signing bigger deals in 2024

[Noteable]

January 2024 - The global life sciences industry has once again embraced big deal making, with mergers and acquisitions (M&A) investment totaling US$191b to 10 December 2023, compared with US$142b in 2022. Though deal volume fell, with the total M&A spend representing only 118 completed deals, compared with 126 in 2022, the average deal size increased significantly in 2023.

According to the 12th edition of the annual EY M&A Firepower report, which tracks global M&A investment in life sciences, the industry’s return to M&A is being driven by topline pressures, key products losing their patent protection in the next five years (“patent cliff”) and the need to do the right deals now to deliver new revenue growth and value into the future. The industry also holds near-record levels of Firepower – defined as a company’s capacity to do M&A based on the strength of its balance sheet.

M&A targets: oncology and rare diseases

The huge growth potential of the oncology market is reflected in companies’ M&A spending over the past five years, with oncology dominating industry acquisitions in both value and volume terms – in 2023, M&A investment in oncology assets reached US$65.2b. The intense competition for these assets has also resulted in companies paying higher multiples than for targets in other therapeutic areas. 

As well as oncology, the changing regulatory landscape is leading to other assets becoming attractive acquisition targets. With legislation such as the IRA unlikely to affect the price point for orphan drugs, companies specializing in rare diseases have become significant M&A targets, commanding high multiples and driving some of the biggest deals of the past 12 months.

[Noteable]

How much of that $1.37 trillion can those top 25 biopharmas be expected to spend in 2024? The rising valuations of takeover targets, in part reflecting inflation, explains why the average deal size nearly doubled, soaring 77% to $2.18 billion during 2023 through December 10, from $1.23 billion in 2022. Why was 2023 the year biopharma giants chose to deploy “firepower” capital toward M&A?

[Noteable]

Having ONCY's development of the manufacture of a fully validated single use syringe is a big deal on the path to commercialization. This development is something that Big Pharma likely asked for and ONCY delivered, which suggests that pelareorep is a lot closer to being acquired than we may know.

[Quentin30]

Even for Clinical Trial supplies, Pela will still have to be compliant with a validated manufacturing process... ONCY has had 25 years on this... they have their manufacturing process in place... This was nothing new. And to suggest that this means Pela is a lot closer to be being acquired is misleading. there is no inference here at all... Another nothing burger from the pumpers.

[Azzak34]

Oh Quenty, you're starting to feel it aren't you? The inevitability of your stupidity coming to fruition.  I want to bask in your panic. Feels good "Bro". 

[Quentin30]

What panic..? I'm not sure I get you Azzak... My CRSP is up around 100% since I transferred out of ONCY My BTC has more than doubled in that sme time CleanSpark is up over 250% And The recently mentioned BYON, is up from my buy price of 15 and now trading at 36 and change..? ONCY has gone down for six months straight. How on earth would that make me panicky ? Are you on crack ? Like I have

[Azzak34]

I'm up 600% on the year so far. I was up 714% last year. Big whoop, nobody cares.  Wait, I thought you still had shares you lil liar.  What's reddit saying to "invest" in today bro? 

[Quentin30]

excellent, that's some very handsome returns Azzak.. But like you say, who cares?  What's your return on holding ONCY to date "bro" ? You still down on this one? LOL

[Azzak34]

Yeah down about 4% Bro but that's OK bro because I'm 100% confident I'm right bro.  What's the next meme you're gonna push? 

[Noteable]

How much of that $1.37 trillion can those top 25 biopharmas be expected to spend in 2024? “[Buyers] were sitting on the sidelines because of lot of uncertainties around macroeconomics and regulatory issues, but also geopolitical situations. But what we have said in our Firepower report is, they cannot sit on the sideline too long, because the patent cliff isn’t waiting for anybody,” EY's

[Noteable]

How much of that $1.37 trillion can those top 25 biopharmas be expected to spend in 2024? Plenty enough for ONCY to be acquired. This may bode well for the perhaps preferred deal targets of today: young startup and emerging clinical-stage companies with promising and differentiated therapies in development.  “What that means is there’s not enough [quality] pipeline in the R&D system to

[Noteable]

ONCY appears to be readying itself for an acquisition with the institution of the following compensation provision that is in large,  parallel with Big Pharma's compensation philosophy..."The Board of Directors (the “Board”) of Oncolytics Biotech Inc. (the “Company”) believes that it is in the best interests of the Company and its shareholders to create and maintain a culture that

[Noteable]

Big Pharma is going further upstream in the innate immune system innovation continuum by acquiring earlier and earlier companies to fill their product piplelines that are being seriously impacted by the imposinmg patent cliff that Big Pharma is currently beginning to facing. March 13, 2024 /PRNewswire/ -- IFM Thewrapeutics(IFM), a privately held biopharmaceutical company focused on

[Noteable]

March 10, 2024 - Cantor Fitzgerald sees another strong year ahead for oncology M&A.  Impending patent cliffs will be a big motivator for deals. According to Cantor, around $182B in revenue is at risk over the next four years due to patent expirations, with oncology products accounting for 42% of that number. Several of the industry's biggest are set to lose patent

[Noteable]

Impending patent cliffs will be a big motivator for deals. According to Cantor, around $182B in revenue is at risk over the next four years due to patent expirations, with oncology products accounting for 42% of that number. Meanwhile, the global market for oncology drugs is expected to grow from $180B in 2022 to $323B in 2028, a rate that is “unparalleled to other therapeutics areas

[Noteable]

Impending patents cliffs will be a big motivator for deals, according to Cantor, who also stated that over the next 4 years, approximately US$182 Billion in revenue is at risk, with oncology products accounting for 42% of that number.  Meanwhile, the global market for oncology drugs is expected to grow at of unparalled rate of over 75% to US$323 Billion in 2028.

[Noteable]

ONCY, as a company registered in Delaware and the Barbados, is the owner of the patents of pelareoprep. Not Matt Coffey as some confused posters have claimed.

[canadafan]

Notable I agree 100% ,Dr. Matt does not own the patents. He did however write the thesis & mutiple requirements to obtain the patents. As sole survivor of founding members, he has royalties to the income from Pelareorep. The royalties are a great incentive for him to get Pela to market. The contract is a declining scale & might actually be zero % or expired by now? He did get paid

[ENEMENEMYNEMO]

So you know off hand the % of inside ownership?

[itntdf]

https://finance.yahoo.com/quote/ONCY/holders

[Lesalpes29]

Anson is out I hope! We can see the level of interest by institutions! Good work Matt!

[Buckhenry]

Ole unnoteable and canuckfan working overtime to see which one can pile the most dung on this site. I didn't  know bots had egos. 

[Azzak34]

Bucky, can you go and make sure Quentin is OK? It's been a rough few days and I just want to make sure he's OK! He should be in the next cubicle to you, or maybe fetching coffee for someone. Let us know. 

[Noteable]

In January 2024 Bristol Myers Squibb (BMS) completed its acquisition of the Phase 3 small molecule company Mirati Therapeutics, Inc., which is now a wholly owned subsidiary of the company. The definitive merger agreement was reached in October 2023, with BMS acquiring Mirati for $58 per share in cash, for a total equity value of $4.8 billion. Under the agreement, BMS obtains Mirati’s entire

[Noteable]

With BMS acquiring a  Phase 3 small molecule company Mirati for US$4.8 Billion n January 2024, whose product portfolio doesn't have the same level of market exclusivity as would a Phase 3 biologics company that has been given an extra 4 years of marketing protection under the Inflation Reduction Act (IRA) passed in 2022, ONCY's biologics platform that fits into the further

[Noteable]

How much of that $1.37 trillion in "fiepower"can the top 25 biopharmas be expected to spend in 2024? Many of the world’s top pharmaceutical firms are seeking deals to transform often aging drug pipelines, and have billions of dollars to spend on doing so. “The prospect of further M&A activity looks strong this year,” said Ailsa Craig, co-lead manager of the International

[Noteable]

Screening the market to identify under-served therapeutic areas with unmet treatment needs is an approach that guides big pharmaceutical companies in their focus as they search for new acquisitions. Often this approach is one of buy and build around a key initial acquisition to create a platform where synergies in knowledge and sales channels can be exploited.  While a few years ago small

[Noteable]

As large corporates reshuffle their portfolios regularly, either as part of ongoing strategic reviews or as part of maturing segments, assets are opportunistically divested and acquired. A growing strategy is emerging around the acquisition of orphan assets as single agents or as part of larger platform portfolios, which reflects in part, ONCY's platform asset in pelareorep for the

[Noteable]

Several factors fueled the revival of M&A activity in 2023. Pharma companies have exceptionally strong balance sheets and approximately US$1.37 Trillion of acquisition "firepower". They are taking a hard look at new technologies to build and expand their capabilities. Targets are increasingly seeking to do transactions at stabilizing values, which are premium valuation for late-stage

[Noteable]

March 19, 2024 - Big Pharma AstraZeneca acquires Canadian Phase 2 radiopharmaceutical company Fusion Pharmaceuticals for US$2.4 Billion  Fusion CEO John Valliant said in a statement that the acquisition will combine “Fusion’s expertise and capabilities in radioconjugates” with AstraZeneca’s “leadership in small molecules and biologics engineering.” https://www.biospace.com/article

[Noteable]

Should read: ... How much of the $1.37 trillion in "firepower" can the top 25 biopharmas be expected to spend in 2024? 

[Noteable]

“[Buyers] were sitting on the sidelines because of lot of uncertainties around macroeconomics and regulatory issues, but also geopolitical situations. But what we have said in our Firepower report is, they cannot sit on the sideline too long, because the patent cliff isn’t waiting for anybody,” EY's Subin Baral said.  “Just a matter of time” “I think it was just a matter of time this

[Noteable]

March 05, 2024 - Biogen's Top Dealmaker Keen on Orphan/Rare Disease Drug Companies.  Biogen's Keeney cited regulators' growing willingness to consider surrogate endpoints for rare diseases as bolstering the larger business model for developing these drugs. Peter Marks, M.D., Ph.D., director of the FDA’s Center for Biologics Evaluation and Research, recently said that

[Noteable]

Shifting Gears Towards Oncology In a strategic pivot that caught the eyes of investors, patients, and healthcare professionals alike, Pfizer has recently unveiled a significant emphasis on its oncology portfolio, aiming to reinvigorate its market position and financial outlook. During a comprehensive investor presentation, Pfizer outlined its transition towards a focus on biologics within

[Noteable]

Forbes -  $6.16 Billion Per Drug Approval - [Per Disease Indication] Over the past 20 years, from 2001 to 2020, big pharma companies increased their R&D spending by 6% annually, and spent $6.16 Billion per drug approval.  Back in 2010, the researchers estimated the cost per drug - from hit identification to approval - to be around $1.8 Billion, and the average

[Noteable]

Oncology, or the study, diagnosis, and treatment of cancer, is at the top of the list of deals, adding up to $49B in 2023 alone. Rare diseases and immunology are two sectors coming up second and third by value of deals. mRNA therapy or treatment options using messenger genes to deliver genetic information to DNA are also gaining traction. In the last few years, M&A in the pharmaceutical

[Noteable]

As requested, when I wrote that Big Pharma is interested in entering into M&A deals with corporate partners possessing complimentary, innovative, and market-ready drug products approaching commercialization, and that acquisitions of those biotechs with these kind of drug products, is a major solution to the looming problem that Big Pharma is beginning to face, I am referencing ONCY's "

[itntdf]

https://www.ropesgray.com/en/insights/alerts/2024/03/life-sciences-2024-dealmaking-trends-and-outlook

[Noteable]

Should read .... particularly if Big Pharma fails to take other appropriate M&A actions to mitigate the impending damage to their product pipelines.

[Noteable]

 What makes a life sciences company appealing for an acquisition or merger? “In pharma, it's simple. Does it compliment their pipeline or fill a gap at the end of the day?” said Gadi Saarony, CEO of Advarra, however, each company's decision is seen through a different lens, depending on their goals and business models. “Acquiring companies are often looking for near-term

[Noteable]

"The M&A environment has kind of woken up a little bit,” according to Jay Stamatis, vice president and head of business development and acquisitions at Abbvie, speaking on March 04, 2024 at Biocom California 2024 Global Life Science Partnering and Investor Conference

[Noteable]

 "The M&A environment has kind of awoken up " 

[Noteable]

 March 21, 2024 - "Investors are losing faith in the confidence of the pharmaceutical business model, looking out into time.”  said Greg Rotz, U.S. pharma & life sciences advisory leader at PwC.  As pharmas navigate the next steps of a potential economic upswing, they need to make the right kinds of deals to secure new market “white spaces” — however risky it is to

[Noteable]

McKinsey & Company's Vision 2028 on China reported that : "China-originated biopharmas face many challenges in navigating overseas regulatory systems and institutions. The first challenge is to provide clinical data that meet thresholds that are already in place. Western regulators typically ask for patient populations that reflect their own region’s demographics, which limits the

[Noteable]

McKinsey & Company's Vision 2028 on China commented that: "Chinese biopharmas’ emphasis on mature MoAs reflects their generally risk-averse approach to clinical development. It has also often left China-originated biopharmas in crowded therapeutic areas, limiting their ability to have an impact on patients’ lives. In the future, companies should pay much more attention to unmet

[Noteable]

March 18, 2024 -  In November 2023, fruquintinib, a small-molecule anticancer drug developed by Chinese pharmaceutical company HUTCHMED, was approved by the U.S. Food and Drug Administration (FDA).  The year 2023 was also one where several significant breakthroughs were achieved, where an increasing share of large molecule drugs, known as biopharmaceuticals

[Noteable]

March 20, 2024, -  Since the calendar turned to 2024, we have seen some blockbusters, including Novo Nordisk's $16.5 billion purchase agreement for Catalent and the closing of Bristol Myers Squibb's $4.8 billion acquisition of Mirati Therapeutics and $14 billion takeover of Karuna Therapeutics https://www.biospace.com/article/biospace

[Noteable]

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

[Noteable]

August 17, 2024 - There’s plenty of capital sitting on the sidelines—and investors can only wait so long to deploy it. Venture firms typically have to write checks within a certain period of time or return the money to their own investors. Perceptive Advisors, a life sciences portfolio holding company, has until May 2026 to spend a $515 millionfund it closed in 2021. Several other venture

[Noteable]

Should read April 17, 2024 ..... 

[ENEMENEMYNEMO]

So what's the next catalyst here??

[Azzak34]

Are you saying that you "bought back in" without knowing what catalysts are coming up? Sounds like you may not be good at this! Or...... didn't buy back in at all and are just here to sow gear, uncertainty and doubt! 

[Noteable]

April 18, 2024 - The number of biopharma M&A deals more than doubled in the first quarter of 2024 compared to the same period a year ago, exemplifying a top exit route for pre-commercial companies vying for validation and attention.  A new report from Leerink Partners tallied 13 biopharma M&A deals in the first quarter of 2024 compared to six in the first quarter of 2023. There

[Noteable]

April 25, 2024 - Bristol-Myers Squibb’s market capitalization has dropped so much over the past year that it is now arguably no longer part of the big pharma club.   After reporting disappointing earnings figures on Thursday, the company’s shares fell sharply, giving it a market capitalization of about $95 billion. That makes it smaller than biotechs like Regeneron and Vertex, both of which

[Noteable]

Vertex's US$4.9 Billion acquisition of the early clinical stage - Phase 1b biotech company Alpine Immune Sciences took approximately 5 months - from start to finsih. Vertex will initiate a Phase 3 study for Alpine's Phase 1b lead product in H2 2024.

[Noteable]

As an example, in April this year Vertex acquired the early clinical stage - Phase 1b biotech company Alpine Immune Science for US$4.9 Billion .

[Noteable]

May 13, 2024 - Large-cap and specialty pharma companies are continuously hunting for targets, said Ali Pashazadeh, founder, chairman and CEO of the financial advisor Treehill Partners. Pharma companies often have internal programs already in place for most tumor types but will acquire where there is a “white space” in their pipeline, he added. The landscape of oncology also has moved from

[Noteable]

Oncologists perception will accelerate Big Pharma's M&A drive in the oncology space. May 15. 2024 - Merck’s cancer drug giant Keytruda has helped the Big Pharma top how oncologists see cancer drug makers, but no one company is dominating the field. That’s according to the latest report from analysts at ZoomRx that recently asked 50 oncologists about their perceptions of various

[Noteable]

April 30, 2024 - Bristol Myers Squibb (BMS) is the latest large pharma to wield the restructuring ax, with plans to cut $1.5 billion in costs by the end of 2025, including laying off more than 2,000 employees. Over the last six months, BMS has been aggressive on the M&A front, spending $14 billion on Karuna Therapeutics and $4.1 billion on radiopharma biotech RayzeBio.  On April 25

[Noteable]

Earlier this month, Joerg Tritschler, a partner in Simon-Kucher’s life sciences division, explored the two major strategies big pharma companies are employing amid current macro challenges and efforts to offset looming patent losses to blockbuster brands. Tritschler’s comments focused on Big Pharma’s need to adapt their strategies in life cycle management and product development in the face of

[Noteable]

Many current Big Pharma layoff are in advance of M&A activities and the absorption of the acquired target's staff, who have the knowledge required to facilitate driving the scale up of the acquired drug candidates into the marketplace and into multiple new itreatment indications.

[Noteable]

February 2024 2024 – PharmaExec.com – Coming out of the JP Morgan conference, S&P Global Rating Managing Director- Healthcare, Arthur Wong stated that Big Pharma companies  “are back again and getting an early jump in 2024 on the M&A side. Again, broadly for healthcare, but it’s led by big pharma and biotech companies again. Neither the high interest/elevated interest rate environment

[Noteable]

May 02, 2024 - Oncology was the top therapy area for M&A deals in Q1 2024, with a total deal value of $29bn.  Globaldata reports that given that the biopharmaceutical industry can overcome challenges imposed by the FTC, the remainder of 2024 is poised for continued M&A investment from large biopharmaceutical companies, which could accelerate research and development and the launch of

[Noteable]

May 02, 2024 - According to the law firm of Morgan Lewis of Boston, MA., "Biopharma dealmaking could accelerate in 2024 and onwards because the industry is now reaching the much-anticipated “patent cliff” where several pharma companies have major blockbusters that are going to go off patent protection relatively quickly.  The sector retains more than $1.37 trillion in available capital

[Noteable]

May 15, 2024 - Blackstone's newly created Life Sciences division is launching a new biotech focused on inflammation and immunology. Consider this announcement a bat signal to the companies that missed out on the Aiolos Bio sweepstakes. That biotech similarly launched with more than $200 million in October 2023 with an anti-TSLP antibody and less than three months later, GSK came calling, 

[Noteable]

Yes .... "the evidence is clear".

[Noteable]

June 03, 2024 - EY Beyond Borders - " In parallel, Big Pharma is in the midst of a US$350 billion patent cliff,1 driven by a loss of exclusivity for some of the best-selling biologic products of the last decade. Large pharmaceutical companies are facing a dramatic drop in revenue, especially those that profited most from vaccines and therapeutics made in response to the COVID-19

[Noteable]

https://www.prnewswire.com/news-releases/beyond-borders-2024-innovative-biotech-industry-is-well-positioned-for-a-comeback-when-the-financing-environment-improves-says-ey-report-302159891.html

[Noteable]

June 12, 2024 - Dealmakers predict that a rebound in public transactions will come soon.  “Big Pharma still has the same challenges and the only way for them to solve this is through BD [business development] and M&A,” Jefferies’s Roop said. “I feel optimistic that we’ll continue to see deal-flow.” J&J is one drugmaker that’s likely poised to participate in any rebound, according