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.

Stock Watch Image, Andy Smith
ANDY SMITH OFFERS A LIFE SCIENCE INVESTOR'S PERSPECTIVE ON BIOPHARMA BUSINESS

Halfway through 2021, the shortened 4 July working week seemed to prompt a retrospective lamentation on social media and in the press at the low number of acquisitions of biotech companies so far this year. The reduced appetite for biotech buyouts seems to be only indirectly associated with the pandemic, but is fundamentally a good sign for big pharmaceutical companies.

On the cusp of second-quarter earnings season, investors can expect to hear investment bank analysts ask the same question that...

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