Experts at PwC are confident that a disappointing first half of 2022 in the pharmaceutical and life sciences industries will give way to an end-of-year “flurry of deals.” Big pharma firms, particularly those flush with extra funds derived from wise COVID-19 market investment, are ready to spend, the professional prognosticators report—and the need for new assets to fill lacking pipelines will buoy the flagging market.
Multi-pronged deals might be leading the charge of this turnaround, as the U.S. Federal Trade Commission has signaled a penchant for larger-scale deals; big transactions in the $5 billion to $15 billion range could pepper headlines in the latter half of the year. Valuations have not exactly fallen off a cliff, with pharmas in recent months shelling out 50% to 100% above current trading prices. And 2022’s first half has had its fair share of notable deals, such as the $11.6 billion buy-in to Biohaven Pharmaceuticals’ migraine segment by Pfizer. Also encouraging was Bristol Myers Squibb’s $4 billion purchase of Turning Point Therapeutics, which is currently the second highest value deal. Coming in third is GlaxoSmithKline’s Affinivax acquisition, which came out to $3.3 billion.
Biotech has been wracked with considerable layoffs, with a number of companies outright calling it quits. Only 14 IPOs have launched in the sector this year, for a disheartening $2 billion total. In stark comparison, last year a combined $15 billion was raised through 104 biotech IPOs.