LaserStock29 wrote: Bolt on deals 2022 could be a “pretty buoyant year” for biopharma M&A, and not just because large companies have accumulated plenty of cash.
The need remains clear for pharmas to scale up and diversify in different therapeutic areas, said Glenn Hunzinger, U.S. pharmaceutical and life sciences consulting solutions leader at PwC, in an interview.
The entire life sciences sector could pull off $350 billion to $400 billion worth of M&A deals in 2022, PwC
projects. Besides a flurry of $5 billion to $15 billion biotech takeovers, the accounting firm also sees opportunities for large buyouts of around $50 billion or even a “transact-to-transform” megadeal at $100 billion or more.
In a report in December,
RBC Capital Markets analysts also projected that “a rebound in M&A is imminent,” given that
large companies now have stronger balance sheets while still have looming patent cliffs to fight.
Valuations of small- and mid-cap biotechs have been under pressure recently, making them more affordable and attractive buyout targets, the team said.
As for the size of potential deals, the RBC analysts said they expect
single-asset companies in mid- to late-stage clinical development valued at around $1 billion to $5 billion will be the “sweet spot” for most M&A in 2022, but added that “we may be due for a larger blockbuster deal.”
Mizuho analyst Salim Syed also thinks companies could be buyers, especially when they’re under growth pressure. But he argued that without a clear shift in overall dealmaking sentiment, 2022 is going to be more or less the same as 2021 for biopharma M&A.
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No Excuses......