RE:RE:RE:PwC sees continuation of US$ 5 to 15 Billion Bio M&A DealsBiopharmaceutical companies last year announced the fewest deals since 2013. They finally started writing big checks, though, with Amgen Inc.’s $27.8 billion deal for Horizon Therapeutics Plc and Pfizer Inc.’s $11.6 billion deal for Biohaven Pharmaceutical Holding Co. pushing volume up by 36% to $82.8 billion, the data shows.
Advisers say large drugmakers are likely to be the most active this year because they’re flush with cash and need to bolster drug pipelines.
Global pharmaceutical companies are set to lose some $200 billion in revenue from now to 2030 as top-selling drugs go generic, according to estimates from Subin Baral, EY’s global life sciences deals leader. They have $1.4 trillion of firepower available for transactions, a record, according to a January 2023 EY report.
“We are pretty bullish about 2023,” Baral said. “Bigger pharma and medical device companies are facing lots of headwinds but the fundamentals are strong. We expect lots of bolt-on deals, smaller than $40 billion for biopharma.