Oncolytics Biotech Inc T.ONC

RE:RE:RE:RE:RE:Conditions are right for biopharma M&A to break out

[Noteable]

June 23, 2023 - Haymarket Marketing reported that:  "PwC said that it expects pharma and life sciences deal activity to remain strong in the second half of 2023 as the gap between buyers and sellers narrows. PwC contended that companies with capital flexibility will have a greater willingness to deploy resources and avoid the prospect of losing a competitive advantage or drawing interest from PE. 

“While the broader macroeconomic backdrop remains unclear, [pharma and life sciences] companies with capital flexibility have become more willing to deploy the resources needed to acquire assets with significant upside potential,” said Roel van den Akker, U.S. pharmaceutical and life sciences deals leader at PwC, in a statement. 

Immunology and oncology were also identified in the report as creating some of the strongest interest among pharma and biotech companies pursuing consolidation options. Additionally, another potential driving force for pharma M&A could be C-suite succession planning. 

PwC’s analysis echoes what the firm projected at the end of 2022, which was a return to form for pharma and life sciences companies when it came to considering consolidation options. 

It also aligns with recent assessments of the pharma and biotech sector’s interest in dealmaking despite industry-related pressures like the impact of the Inflation Reduction Act. 

Another key factor affecting M&A trends in the market is the Federal Trade Commission’s recent effort to block Amgen’s $27.8 billion acquisition of Horizon Therapeutics.

[PwC determines that Big Pharma's M&A "sweet spot" is between US$5 Billion and US$25 Billion]