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Latest From Andy Smith
As industry bellwether J&J kicked-off 2019 fourth-quarter and full-year earnings season for life sciences companies, its financial results left investors feeling the cold. But with coronavirus envy sweeping a raft of smaller biotech companies, J&J may have the last laugh.
Stock market reaction to the first day’s news from the 38th J.P. Morgan Healthcare conference in San Francisco was negative, probably because expectations for a continuation of December’s bumper M&A bonanza were too high.
With the 38th J.P. Morgan Healthcare conference about to start in San Francisco, expectations in the investment community are naturally high. This is after a year when the NASDAQ Biotech Index approached its 2015 all-time high, fueled by the acquisitions of biotech companies by pharma companies.
Time is the least considered driver of asset valuations in life sciences – and may be a factor behind the low level of M&A deals so far this year. ICON’s Andy Smith provides some advice to the C-suite and business development managers on strategies to clarify the duration aspect in risk-sensitive transaction negotiations.
Mid-cap biotech companies Alexion and United Therapeutics both missed fourth-quarter sales expectations and although Intercept beat analysts' estimates with $13.4m in sales, does that justify a $3bn valuation?
Debt-fueled acquisitions helped Teva, Shire and Allergan report well-received fourth-quarter earnings. But sector circumstances have changed since 2016 and the ability to grow by debt-funded acquisition is now severely restricted.