RE:RE:RE:RE:RE:RE:RE:RE:FDA guides on how AA can be converted to full approval.In 2022, pre-Phase 3 targets made up 50% of M&A deal volume for the very first time as Big Pharma companies are increasingly moving toward earlier-stage assets to gain access to innovative and novel drug therapies in light of Big Pharma's looming patent cliff. With Pfizer's proposed take-over of Seagen for US$43 Billion, Big Pharma leaders are acknowledging that they must pay a premium for de-risked acquisitions in oncology which represents the highest ROI.
Over the years ONCY has conducted multiple clinical trials on its immune molecule platform technology pelareorep that has resulted in the de-risking of pelareorep in multiple cancer indications and which now comes at a premium to its Big Pharma acquistion partner.
In analyzing the success of M&A transactions, global life science consulting companies like EY have found that bolt-on transactions yield better results for the acquiring Big Pharma companies when the target company is in a therapeutic area adjacent to the core portfolio of the acquiring company, as ONCY has positioned itself as a M&A target. Consultants like EY further suggest that target companies see more success if they build depth and expertise in specific therapeutic areas, which ONCY has achieved, rather than diversifying across a broad range.
Consequently ONCY's acquistion value for its synergistic I/O biologic platform technology that can enhance the effectiveness of PD-(L)1 immune checkpoint inhibitors straight-forwardly falls within Big Pharma's M&A "sweet spot" range of US$5 to $15 Billion.