Are Market Conditions Setting Up A Biopharma M&A Wave?

EY Beyond Borders Report Predicts An Uptake Is Coming

A new EY report contends that declining biotech valuations and the need for large pharma to add pipeline assets may create conditions for a buyer’s market – although year-to-date M&A activity has been lackluster.

An expected uptick in biopharma M&A activity this year hasn't occurred, yet

Biopharmaceutical merger and acquisition activity trended downward from 2016 to 2021, but a confluence of factors may be creating optimal conditions for a new wave of M&A deals, according to a report from Ernst & Young LLP. The combination of reduced biotech valuations and a need by big pharma companies to add to their pipelines ahead of a coming biosimilar-driven patent cliff may create a busy buyer’s market, EY’s Arda Ural told Scrip.

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