Summary:
BPIQ monitors M&A of smid-cap biopharmas
There has been an uptick in biopharma M&A since May 2022
Q2 2023 started off with a bang with GSK acquiring BLU for $2B and MRK acquiring RXDX for $10.8B
Here we look at overall M&A activity in recent quarters including acquisitions per quarter, size of acquisition & acquirer, and the indication area of the company
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As we are almost halfway through the second quarter of 2023, we are on track to see the greatest activity per year for mergers and acquisitions in the last two years. While there were 38 acquisitions announced in 2022, there are already 24 announced as of May 4, 2023.
The largest acquisition announced in Q1 '23 was that PFE will acquire SGEN for $43B!
In Q1 '23 there were 13 acquisitions announced and 5 mergers announced. 13 M&As were completed, including the $1.7B acquisition of MYOV by Sumitovant. Then on March 13, PFE announced they will acquire SGEN for $43B! This is big news especially after the fallout of the possible acquisition of SGEN by MRK announced in 2022. So far in Q2 '23 there have been 6 M&As announced and 2 completed. MRK plans to acquired RXDX for $11B.
Table 1 summarizes the number of smid-cap biopharma acquisitions per quarter since Q1 2021, along with a breakdown of companies by the price of acquisition and the size of the acquirer. Also see Figure 1 for a graph of total acquisitions per quarter since Q1 2022 and acquisitions over $1B.
Table 1. Smid-cap biopharmas acquired by quarter (updated May 4, 2023)
Figure 1. Total acquisitions per quarter and acquisitions over $1B
If we focus on acquisitions with values greater than $1B, there were 3 smid-cap biopharma acquisitions in Q2 2022 by our count, 3 in Q3 2022, 3 in Q4 2022, and 4 in Q1 2023! While there was an uptick in acquisitions throughout 2022, the increase appears to be driven by smaller deals. Maybe this isn't surprising since the valuations of most smid-cap biopharma companies have been severely reduced over the past 1.5 years. In 2023 there have already been 7 acquisitions >$1B announced, so it will be interesting to see how acquisition size compares for the rest of the year!
See our full BPIQ report (after signing up for free) for a table of all recent M&As as well as key attributes of these companies. And watch for our upcoming blogs focusing on key attributes of these companies and recent chatter around possible M&A candidates.
Get access to our more detailed quarterly biopharm M&A report, including key M&A target attributes - CLICK HERE and sign up for a free account.
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This article is NOT legal, investment or tax advice. Please do your own diligence before making any investment decisions.
Article history:
Originally posted 8/9/22
Updated 9/21/22
Last updated 4/16/23 (end of Q1 posted 3/30/23)
Last updated 5/4/23
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