In a year of recession, a non-existent IPO window, more cautious public and private investors, and the need to conserve cash, it’s clear why 2008 was the year of M&A. While the biotech industry is expected to rebound this year, M&A is still top of mind for small biotechs and big pharma. Small biotechs and big pharma encourage quick movement in this uneasy economy—a “be honest, let go, and move on” mentality to be exact! Industry experts advise small biotechs to funnel their assets to avoid confusing potential buyers who are only going to fund programs driving value.
For big pharma, just because a company’s for sale, doesn’t mean it’s a good deal. They’re looking for opportunities in promising therapeutic areas with clear, definable and mutually agreeable terms.
With more than 350 publicly traded biotechs, less optimistic experts estimate that as little as 175 will survive the current market.