Private Biotech M&A Review: Has the Market Lost Steam?

In a still-frozen IPO market, acquisition has become the go-to exit for biotech VCs, but an analysis of the past four years' deals suggests the market may have peaked. Of more than 180 private biotech acquisitions since 2005, fewer than half in each year resulted in a reliable exit for investors, and those numbers are trending downward. Although the most active acquirers amounted to a list of the usual suspects, the bulk of acquisitions were conducted by a diverse set of smaller public and still-private firms. We also review the characteristics of those companies that have had success in terms of good exits for investors.