Biopharma M&A activity in Q2 2023 picked up as the number of therapeutics and discovery platform company acquisitions tracked higher. The second quarter of 2023 saw 27 M&A deals for a total upfront of $27.4 billion or $28.1 billion when counting contingent payments. This follows a higher-value Q1 2023, which had 26 deals for $50.1 billion or $51.4 billion with contingencies. Pfizer announcing its acquisition of Seagen raised the Q1 2023 total significantly.
Biopharma Therapeutics & Platforms Vs Other Life Sciences
Biopharma therapeutics and discovery platform M&A peaked in 2019 at $203.9 billion with BMS/Celgene, then the annual total values fell every year through 2022 at $85.8 billion. The first half of 2023 is looking positioned to put full-year 2023 much higher. A recent Stifel report had the 2023 estimate at above $150 billion to set 2023 as the third highest annual value since 2008. This year’s total biopharma M&A deal value was at $80.9 billion as of June 30, 2023.
M&A – Top Technologies Since 2022
Biologics company acquisitions topped the list of technologies in M&A from 2022 to 2023 YTD with 53 deals and a substantial total M&A value of $76 billion. Small molecule-focused company acquisitions ranked second with 69 deals totaling $58.8 billion.
Top 5 Biopharma M&A Deals Of Q2 2023
- Merck completed its acquisition of Prometheus Biosciences in June 2023. Prometheus’ lead assets were Phase II PRA-023 for Ulcerative Colitis and Crohn’s Disease, Phase I PRA-052, and various preclinical therapies. Prometheus shareholders received $200.00 per share in cash at a one-day premium of 75% and total of $10.8 billion.
- Astellas Pharma acquired Iveric Bio in April 2023. The acquisition included Iveric Bio’s assets, such as Phase III Avacincaptad pegol, preclinical therapies, and research-stage candidates. The total equity value of the acquisition amounted to $5.9 billion, achieved through the allocation of 148.2 million shares of Iveric’s common stock at $40.00 per share in cash, representing a one-day premium of 22%.
- Novartis announced its acquisition of Chinook Therapeutics in June 2023. Chinook’s lead assets include Phase III Atrasentan and Phase II BION-1301. Chinook shareholders will receive $40.00 per share at a one-day premium of 67% for a total of $3.2 billion. Additionally, shareholders can receive up to $300 million through regulatory milestones.
- Eli Lilly is set to acquire DICE Therapeutics. DICE shareholders will receive an upfront payment of $48.00 per share in cash at a one-day premium of 42% and a total upfront value of $2.4 billion.
- GSK acquired BELLUS Health, a late-stage biopharmaceutical company focused on refractory chronic cough. The acquisition involved a payment of $2 billion, equivalent to $14.75 per share of BELLUS’ common stock in cash at a one-day premium of 103%.
