RE:RE:RE:RE:RE:PwC sees continuation of US$ 5 to 15 Billion Bio M&A Deals“As patent expiries draw closer, M&A is becoming a vital tool for pharma companies looking to bulk up near-term revenue and strengthen drug pipelines,” explains Bryan Luchs, Partner at White & Case. According to Cantor Fitzerald, big Pharma had close to $1.37 trillion in cash in 2023, the second-highest in a decade after the 2021 Covid-vaccines-induced boom. Now, however, estimates are that these companies’ cash piles have grown even higher, further bolstering the industry’s firepower.
Their pursuit of diversification could trigger a cascade of oncology-focused M&As,” says Aaron Rafferty, co-founder and CEO of Standard.
The increasing competition for innovation within the sector may also lead to the payment of high premiums for smaller target companies, which could result in hefty gains for investors positioned in such stocks.
“Historically, we know big Pharma can be quite price insensitive when it comes to assets that they want. We could be looking at just as many, if not more, deals, but maybe at a higher premium or valuation than the past two years,” explains Fitzgerald's Watsek.