Oncolytics Biotech Inc ONCY

Biotech M&A to Boom across a landscape of uncharted markets

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June 09, 2023 - RBC Capital Markets - Dr. Greg Renza - Biotechnology Analyst

 

• Surging M&A activity is being driven by robust balance sheets, pending patent cliffs, improved policy clarity, and enhanced prospects for positive trial results.
• Further major acquisitions are anticipated as big pharma seeks to explore unconventional partnerships and differentiated innovation in uncharted markets.
• Big pharma's future acquisitions are anticipated to focus on promising areas such as oncology, neurology, and psychosocial factors
• Despite setbacks in the public markets, early-stage companies continue to progress and attract funding, creating potential inflection points for future interest.

With robust balance sheets and patent cliffs pending, we’re seeing big pharma exhibit quite bullish sentiment this year,” says Renza. “Moreover, improved policy clarity has also bolstered momentum into the small and mid-cap space, all of which enhances the prospects of companies advancing their programs and drive towards positive trial results.”

 “Larger pharma is seeking to integrate new innovations into existing treatment areas and expand into new domains,” explains Renza, “sometimes through acquisitions that may not seem immediately logical or obvious.”

The compelling narratives surrounding these deals hint at the potential for further partnerships and acquisitions, ushering in a new era with far-reaching implications. These evolving dynamics underscore the need for companies to adapt and diversify their offerings. The quest for innovation has led to a willingness to explore unconventional partnerships and acquisitions, as firms recognize that transformative breakthroughs can arise from unexpected sources.

This openness to unconventional deals further contributes to the potential for a surge in major acquisitions, as companies pursue differentiated growth to secure their positions in an ever-evolving market.

https://www.rbccm.com/en/gib/biopharma/episode/biotech-ma-booms-but-have-we-reached-a-tipping-point

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 “The acquisition of Bellus by GSK revolves around the potential of an undefined market, specifically chronic cough,” explains Greg. “While strategic interest and M&A activity have been observed in rare diseases, small markets, and established commercial portfolios, what distinguishes this acquisition is the uncharted nature of the market. Bellus is bringing a late-stage asset to GSK, but

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Big pharma’s focus for future acquisitions When considering the next wave of potential acquisitions, it’s clear that big pharma is actively seeking opportunities in various areas of interest. One particularly promising field is oncology, where significant potential for further advancements exists. The expanding knowledge surrounding the immune system is also a driving force behind increased

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" One final aspect that should never be underestimated when it comes to deals is the perspective of the Federal Trade Commission (FTC) regarding acquisitions and consolidation. As numerous deals continue to make headlines, it’s reasonable to anticipate heightened scrutiny around antitrust considerations, particularly with the larger transactions that are currently taking place."

[fox7mf]

I would sign off on an $24.9b deal. It just  better be more than Immunomedics;)

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Torreya Managing Director Tim Opler said a platform deal is coming — and soon. Also, Torreya's Opler says that immunology is hot — as evidenced by the Prometheus takeover.  When it comes to biotech M&A activity, cancer has been one of the hottest areas of focus. This is due in part to the significant progress that has been made in the development of cancer treatments in recent