M&A Has Been Down, But EY Argues Conditions Are Right For An Uptick In 2023

A confluence of factors caused 2022 to be the least active merger-and-acquisition year for the life sciences sector since EY began conducting its evaluation of the sector’s spending capability in 2014. Even with December’s $27.8bn acquisition of Horizon Therapeutics plc by Amgen, Inc., EY noted that M&A total deal value was down 39% from 2021, while deal volume declined by 23%.

But another set of factors – including a looming industry patent cliff that dwarfs the one from roughly a decade ago and an expected buyer’s market as both public market and special purpose acquisition company (SPAC) exits have dried up for the biotech sector – should lead to at least a normal deal-making year for the sector and