Upward Trajectory For Biotech/Pharma M&A: Sector Trends Towards Pre-Pandemic Levels, Forecasts Positive For 2024
Portfolio Pulse from Vandana Singh
The Global Data report indicates a decrease in pharma sector M&A deals in Q3 2023 compared to Q2 2023, with a 28% drop in deal value and a 9% drop in deal volume. However, PricewaterhouseCoopers forecasts a positive outlook for 2024, expecting a return to pre-pandemic levels of M&A activity. Notable deals in 2023 include acquisitions by Pfizer, Bristol Myers Squibb, Merck, AbbVie, Biogen, and Astellas Pharma.
December 29, 2023 | 12:04 pm
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AbbVie Inc announced acquisitions of ImmunoGen Inc and Cerevel Therapeutics, with a combined equity value of approximately $18.8 billion.
AbbVie's acquisitions of ImmunoGen and Cerevel Therapeutics represent a significant investment in expanding its therapeutic offerings, likely to have a positive short-term impact on its stock.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Astellas Pharma Inc has agreed to buy Iveric Bio Inc for approximately $5.9 billion, expanding its ophthalmology portfolio.
Astellas Pharma's acquisition of Iveric Bio is a strategic move to grow its presence in the ophthalmology sector, which could have a positive short-term impact on its stock.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Biogen Inc agreed to acquire Reata Pharmaceuticals for an enterprise value of approximately $7.3 billion.
Biogen's acquisition of Reata Pharmaceuticals could provide a boost to its drug development pipeline, potentially leading to a positive short-term impact on Biogen's stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Bristol Myers Squibb has multiple acquisitions including Karuna Therapeutics, Mirati Therapeutics, and RayzeBio, totaling over $21 billion in equity value.
Bristol Myers Squibb's series of acquisitions demonstrates a strong strategic move to enhance its product pipeline, which could positively influence investor sentiment and stock price in the short term.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Merck & Co acquired Prometheus Biosciences for approximately $10.8 billion, expanding its portfolio in the biotech space.
Merck's acquisition of Prometheus Biosciences could enhance its market position in biotech, potentially leading to a positive short-term impact on its stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Pfizer Inc acquired Seagen Inc for $43 billion, indicating a strategic expansion in its portfolio.
The acquisition of Seagen by Pfizer is a significant move that could lead to synergies and an expanded oncology portfolio, likely resulting in a positive short-term impact on Pfizer's stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90