In this article, John Carroll talks about the Q4 2023 biotech sector in a report that reveals a significant uptick in mergers and acquisitions, highlighting a change towards growth amid valuation and economic headwinds.
Data and charts from DealForma show M&A being the strongest in 2019 after which it dropped nearly in half until 2023 where we started seeing and uptick in dealmaking, with the highest in Q4 reaching 60.3 billion and still continuing this momentum into 2024.
Our Data for biopharma licensing shows that while 2023 saw a high in dealmaking value, especially in Q4, the number of deals actually decreased from the previous year.
Catalent’s CEO predicted a good year for biotech, hoping for successful IPOs later on. Early signs, like CG Oncology’s IPO, make others hopeful too. If inflation drops and interest rates go down, biotech IPOs might pick up again. data shows a few new biotech IPOs recently, pushing companies to make deals to find money. With more access to funds, they might manage better.
John Carroll suggests a cautiously optimistic scenario for the biotech sector in 2024, with potential for overcoming recent downturns. The detailed analysis within the report provides insights into these strategic decisions and their expected impact on the industry’s direction.
Interested in understanding the specifics behind these strategic movements and their implications for the biotech industry’s future? Explore the full report for in-depth analysis and forecasts.
As always, DealForma was happy to contribute the data and charts.