RE:RE:RE:PwC sees continuation of US$ 5 to 15 Billion Bio M&A Deals Many large drug makers have struggled to internally develop enough new
blockbuster treatments to replace aging cash cows going off-patent.
Rather than go it alone in risky early-stage R&D, they are turning to biotech
companies working at the frontiers of medicine.
These smaller biotech firms are proving to be fertile ground for novel drug
discoveries. Despite their small teams and budget, smaller innovation focused
biotech can move nimbly to translate innovative research into therapeutic
candidates. Their laser focus on narrow areas like orphan diseases, gene therapies,
or targeted oncology treatments allows them to rapidly innovate in ways that
large pharma bureaucracies cannot.
By acquiring these mid to late stage development biotech companies, big pharma
gains a fast-track to promising new drugs and therapies that would take years and
billions to develop internally. They can get first-mover advantage on
groundbreaking new treatment modalities. Just as importantly, they acquire
the entrepreneurial scientific talent behind the discoveries.