2022 a year for deals! 2022 forecast: Biopharma M&A lags in 2021. Will drugmakers still look for bolt-on deals or large transactions?
2022 forecast: Biopharma M&A lags in 2021. Will drugmakers still look for bolt-on deals or large transactions?
I certainly hope THTX stays independent but they do have R&D assets both NASH and the oncology program with solid global patent, while big pharmaceutical companies are sitting on pile of cash and often have little desire to take on projects early on due to higher risks if and when the oncology program has progressed with promising prospects and the phase 3 ready NASH I hope the company can pull of a decent deal for either of programs during 2022.
“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.”