Finance Watch: Recent M&A Uptick Gives Biopharma A Needed Boost

Biopharmaceutical company valuations overall still are down by double digits year-to-date, but as the second quarter transitioned into the third stock prices have begun to rise across the industry as investors become hopeful that some of the small and mid-sized firms in their portfolios will be acquired by larger specialty and pharma buyers.

William Blair analysts said in an 18 July note on financial conditions in the biopharma industry that the volume of mergers and acquisitions jumped substantially from a low of $10bn in the first quarter to $28.5bn in the second quarter, spurring the recent rise in various biotechnology stock indices and exchanged-traded funds, such as the XBI