Jost Renggli’s Post

📈 Biotech M&A Activity: What’s on the Horizon? 📈 There’s been much buzz about a potential surge in #biotech mergers and acquisitions (M&A) activity. While we’ve seen modest evidence of this trend, it might be on the verge of accelerating. Large-cap #pharmaceutical companies, facing significant patent cliffs and armed with substantial cash reserves, could be key players in this evolving landscape. According to Morgan Stanley, these pharma giants are at risk of losing up to $180 billion in revenue due to patent expirations but hold $380 billion in cash, ready to invest in #biotech deals. #MergersAndAcquisitions #Investment #Pharma #MarketTrends

Biotech mergers and acquisitions might be on the brink of a major surge. With big pharma facing significant patent cliffs, like potential revenue losses totaling $183.5 billion by 2030, and holding $380 billion in cash reserves, the stage is set for an uptick in biotech deal-making. Companies like Merck, Biogen, and Bristol Myers could be poised to invest in biotech firms that are advancing through Phase II or III trials. As we watch this space, it’s clear that the intersection of patent expirations and available capital could spark a dynamic shift in the biotech industry. #Biotech #PharmaMergers #MergersAndAcquisitions

𝐌&𝐀𝐬 > 𝐈𝐏𝐎𝐬 The biotech industry began 2024 with strong IPO activity, but as the year progressed, IPO momentum declined, leading to a notable increase in private biotech mergers and acquisitions. 𝐊𝐞𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬: 🤝 𝐒𝐮𝐫𝐠𝐞 𝐢𝐧 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐁𝐢𝐨𝐭𝐞𝐜𝐡 𝐀𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧𝐬: In 2024, 13 of 26 deals over $50M involved private firms, a pace not seen in six years. 💵 𝐋𝐚𝐫𝐠𝐞𝐫 𝐃𝐞𝐚𝐥 𝐒𝐢𝐳𝐞𝐬 Seven deals have exceeded $1 billion each, with median upfront payments more than three times the past six-year average. 📊 𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬: The slowdown in IPOs and the need for new pipeline assets due to patent expirations are driving this trend, termed "valuation capitulation" by analysts 𝐒𝐭𝐚𝐧𝐝-𝐨𝐮𝐭 𝐃𝐞𝐚𝐥𝐬 𝐈𝐧𝐜𝐥𝐮𝐝𝐞: Biogen & HI-Bio: A Biogen Company: Biogen's $1.15 billion acquisition of Hi-Bio, a private company advancing its drug candidates through successful Phase 2 trials. AbbVie & Celsius Therapeutics: AbbVie’s acquisition of Celsius Therapeutics, which faced funding challenges post-Phase 1 trials. Gilead Sciences & MiroBio Ltd: Gilead Sciences' acquisition of MiroBio for $405 million, focusing on MiroBio's immune therapies in early development stages. Are investors increasingly turning to M&A as a viable alternative to IPOs, seeking liquidity and returns amid current market uncertainty?

Unlocking the secrets of successful acquisitions in biotech: How can due diligence illuminate the path to decision-making and reveal potential roadblocks? Dive into our comprehensive checklist and leave no stone unturned. #Biotech #DueDiligence #RiskMitigation #SuccessChecklist #WarrenAverett #PrivateEquity #LifeTech

How did Q3 look for the pharma and biotech landscape? Our experts have dug into the data for M&A activity, IPOs and venture financing to get the lay of the land as we head into the final few weeks of the year. Is biopharma back on track? Well, 2 out of 3 ain't bad... https://ow.ly/bFjW50TXZwk

🤼♂️ Competition in Recent Biotech M&A Deals 🤼♂️ The image below highlights the number of interested parties involved in the most recent mergers and acquisitions in biotech. Interesting to see that Prometheus/Merck had 15 interested parties. #Biotech #Pharma #Healthcare #MandA

Haiwen acted for Genor Biopharma in the first reverse takeover announced by a Hong Kong-listed pre-revenue biotech company On 7 October 2024, Genor Biopharma (06998.HK) announced that it had entered into a merger agreement with Edding Group. This transaction is the first reverse takeover announced by a Hong Kong-listed “Chapter 18A” company (i.e. a pre-revenue biotech company). To date, more than 50 biotech companies are listed on the Main Board of the Hong Kong Stock Exchange pursuant to Chapter 18A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”), and none of these companies has announced any large-scale merger and acquisition similar to this transaction. Pursuant to Rule 18A.10 of the Listing Rules, without the prior consent of the Hong Kong Stock Exchange, a biotech company listed under Chapter 18A of the Listing Rules must not effect any acquisition, disposal or other transaction or arrangement or a series of acquisitions, disposals or other transactions or arrangements. Accordingly, this transaction is expected to be the milestone and landmark for future transactions of this kind. https://lnkd.in/gUHsxmqe

Why do we see this more and more? Here are 3 reasons why: 1. It’s faster When youve got the money, buying someone else’s innovation is quicker. Time needn’t be your enemy when the shareholders come knocking. 2. It’s less risky Timelines aside, acquisitions enable Big Pharma to pick innovations that already have a track record of success. There’s less chance you’ll end up with something that doesn’t work. 3. Patents on old assets are expiring Spencer Knight and I just did a video that mentions this. Over $100B in patents are expiring for legacy Big Pharma therapeutics. They’ll need new medicines to fill the gap in revenue - so don’t expect mergers and acquisitions to stop anytime soon. So remember… When you’ve got the money, buying innovation can be faster and less rocky than doing it all yourself. Any other points you’d add? Drop them in the comments. #cellandgenetherapy #biotechnology #innovation

What doesn't work must to be replaced with what works. "Concluding Thoughts: We found little evidence the Inflation Reduction Act has resulted in a meaningful decrease in the level of VC investment in new drug development. Other data reinforce this perspective: Late-stage private company and public equity valuations, IPOs, follow-on offerings, and mergers and acquisitions in biopharma largely held steady in the 18 months since passage of the IRA and have had a positive start in 2024. " -https://lnkd.in/eDh29DDi #pharma #IRA #InflationReductionAct #vcfunding #IPO #funding

FCF Fox Corporate Finance GmbH is delighted to publish the new “FCF Healthcare & Life Sciences Venture Capital Monitor – USA 3/2024”. 📈 As of the end of March 2024 we identified the following current VC trends in the United States: - Total Healthcare & Life Sciences funding reached EUR 8,217m - Biotech received 61% of the total investment volume (EUR 5,037m) with oncology being the leading indication (31%) - In March Mirador Therapeutics secures the highest transaction volume with EUR 368m, followed by Alumis with EUR 240m and Avenzo Therapeutics with EUR 205m - Premji Invest (United States) is the most active investor (by deal volume), followed by RA Capital Management (United States) and Novo Holdings (Denmark) To access the full report, please click: https://lnkd.in/d-ejFZWz #capital #biotech #venturecapital #fcffoxcorporatefinance #financingspecialist #corporatefinance #investmentbanking #capitalmarkets #valuation #mergers #oncology