Amarin Corp Plc (AMRN)

[rosemountbomber]

Discussion of M&A past and going forward:

https://www.pharmexec.com/view/biopharma-m-a-year-in-review-ripples-ahead

In 2022, 45 biotech deals worth $24 billion were completed, as compared to 48 deals worth $27 billion finalized in 2021—representing modestly lower numbers in terms of the amount and dollar volume of deals. There were no large transactions, except for Pfizer’s $6.2 billion acquisition of Arena Pharmaceuticals.

Although the industry is well off the record dollar volume of $53 billion that was set in 2020, the last two years have been the highest in years in terms of the number of deals completed. The next highest year over the last 30 was 2016, when 35 deals closed.

What is driving this trend? First of all, most of the acquisitions are being executed by pharma companies who are looking to build their pipelines and revenues. Second, with the collapse of the IPO market, a severe reduction in equity funding, and a dramatic drop in the share prices of biotech companies, the latter are more willing to consider a sale of the company at an earlier stage than they were just a year and a half ago. Third, pharma organizations are using strategic partnerships and licensing to access biotech company technologies and drug candidates. Thus, M&A is not the sole method available to achieve pharma company goals.

What is the outlook for biotech M&A in 2023 and beyond? Expect more of the same in the future, driven by the same factors, with a relatively robust number of biotech deals being completed for the next couple of years, along with strategic partnerships and licensing.