RE:RE:RE:RE:RE:RE:RE:Big pharma is set to keep signing bigger deals in 2024After three years of underperformance, the biotech sector is exhibiting compelling indications of a revitalization, according to Jeffries. 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 is intensifying the need for M&A as drugmakers strive to secure sustainable long-term growth. Since some firms only have a couple of years before their patent expiration, there is a shift toward the acquisition of late-stage biotech assets, which offer the potential to emerge as approvable drugs within the forthcoming timeframe.
And as Big Pharma braces for an ongoing massive patent cliff projected to extend until 2030, these pharmaceutical firms are proactively fortifying their positions through increased partnerships and are needing to pursue bigger deals, particularly now that the 3 year Covid-19 bubble has resolved, and Big Pharma's strategy to transition to the government controlled Chinese biopharma industry is being thwarted by the US Congress and the proposed passing of the Biosecure Act.