RE:RE:RE:RE:RE:RE:PwC sees continuation of US$ 5 to 15 Billion Bio M&A DealsJuly 16, 2024 - After years of disquiet and unpredictability in the pharma markets, a new age of megablockbusters, normalized M&A and more clarity around the Inflation Reduction Act has emerged, bringing the industry’s trajectory into better focus.
Big pharma companies have in the past paid large premiums to acquire companies they are interested in due to a unique drug, technology or field of research in order to boost their pipelines and navigate the effect of patent cliffs. This could be a primary strategy, as the cost of new R&D would be similar to or less than the premium.
Following a slump in dealmaking since 2021, 2023 marked a high point in overall M&A deal value in pharma, and 2024 is on track to surpass that. And both Big Pharma and smaller biotechs are set to benefit.