RE:RE:RE:RE:Big pharma is set to keep signing bigger deals in 2024 Oncology, or the study, diagnosis, and treatment of cancer, is at the top of the list of deals, adding up to $49B in 2023 alone.
Rare diseases and immunology are two sectors coming up second and third by value of deals. mRNA therapy or treatment options using messenger genes to deliver genetic information to DNA are also gaining traction.
In the last few years, M&A in the pharmaceutical industry has been triggered mainly by mid-sized firms. But, in 2023, most deals were initiated by the big pharma companies looking to grab innovative biotechnology firms.
Since this is a capital-intensive industry, acquiring smaller startups is always preferable to investing in in-house labs. R&A requires significant resources but without any specific timeline for getting results.
Notable examples include Pfizer’s $43B acquisition of Seagen and Bristol Myers Squibb’s $14B M&A deal with Karuna Therapeutics. The $27.8B acquisition of Horizon Therapeutics by Amgen and AbbVie’s $10.1B Immunogen purchase are other deals making waves in the industry.
Experts estimate that the US is likely to maintain its position as the hub for biopharma and biotech innovations. Off-shore buyers will continue to consistently rely on American manufacturers to source the drugs, equipment, and technology they need.
The M&A segment will likely see more bolt-on acquisitions, with more prominent brands buying out complimentary startups with innovative IPs. Valuable intangible assets are likely to drive up higher valuations as big pharma races to close the significant growth gap resulting from the at hand patent cliff and loss of lead product market exclusivity. M&A deals with corporate partners possessing complimentary, innovative, and market-ready drug products approaching commercialization, is a major solution driver to the looming problem that Big Pharma is beginning to face.