Business
M&A in 2023, highlighted by a $43bn mega-deal in March, has been modest, with sparse eight-figure takeouts; amid financial constraints, pharmaceutical companies are targeting Europe's early-stage innovators for pipeline replenishment, signaling a possible shift towards larger deals as fundraising and IPO options diminish.
M&A activity in 2023 began with March’s $43bn mega-deal for Seagen, but only one eight-figure takeout has occurred since. Still, the values are higher overall than seen in 2022 and might indicate a gradual return to larger deals.
Venture capital and public market fundraising have grown increasingly difficult since 2021, but while there are glimmers of hope, the rules for who can raise venture cash or launch an IPO have changed.
Money may have become too tight to mention for many biotechs and the IPO window in Europe is not just shut but boarded up. However, big pharma’s need to replenish the pipeline has become urgent and the major players are looking to tap into the continent’s early-stage companies which are driving innovation and provide them with much-needed cash.
The long-term success of TechBio is dependent upon the flow of investment and alliances with mature life sciences companies. This collaborative model has proven many times over to be an ideal framework to develop new treatments for patients.