Stock Watch: Why Have Biotech Acquisitions Paused?
Pharma’s Appetite For Biotech Acquisitions Has Declined In 2021
The subdued number of acquisitions of biotech by big pharma has more than one cause. The structural improvement of the process of drug discovery and development at big pharma is the main one.
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The power dynamics for deal-making in 2022 may shift to smaller companies emboldened by funds from venture financing and IPOs. While the spotlight will continue to be on ADCs and cell and gene therapies, vaccines and COVID-19 treatments will predictably be hot areas for licensing, Syneos Health predicts.
The German biotech had already hinted at possibly expanding through M&A, and Constellation was viewed as an attractive acquisition target.
Another blow-out quarter from Pfizer provided the impetus for an acquisition. But the history of recent commercial-stage biotech transactions and the risky nature of all early-stage companies suggest that the floodgates will not burst open.