RE:RE:Big pharma is set to keep signing bigger deals in 2024
July 03, 2024 - "After three years of underperformance, the biotech sector is exhibiting compelling indications of a revitalization. According to data from Jefferies, drug developers raised US$6.2 billion in equity capital markets in January 2024, the highest since February 2021."
Outlook for M&A and fundraising activity in 2024 remains robust
Biotech M&A activity experienced a rebound last year, as the deal value more than doubled the amount in 2022.
The industry is reaching the looming patent cliff, characterized by a sharp plunge in revenues as the patents for one or more flagship products of a firm expire. Patents will expire for nearly 200 drugs by 2030, and virtually every major biopharma firm will be impacted. The patent cliff could intensify the need for M&A as drugmakers strive to secure sustainable long-term growth."
The majority of Big Pharma's patents that will be expiring are on small molecule drugs. As pointed out in an earlier post - unlike small molecule drugs, biologics have a life after patent expiration.
https://www.nasdaq.com/articles/promising-road-to-recovery-for-the-biotech-sector