The 2022 wave coming? Top analyst says Big Pharma will have more than $1T available to satisfy its growing appetite for biotech M&A
All through this year you could practically feel the frustration of the biotech investor class as M&A activity continued to drag behind expectations — or desires. Buyouts of public companies provide the essential juice for keeping stocks lively, and there’s been a notable lack of juice in 2021.
So is all that about to change, big time?
SVB Leerink’s Geoffrey Porges, a longtime student of biotech M&A, thinks so. In a lengthy analysis he put out last week, Porges totted up the cash flow of the major pharmas and determined that there was a good long list of industry buyers who would have around a half trillion dollars of cash to play with in 2022. Leverage that up with added debt and you could get that deal cache to $1.6 trillion.
Premium subscription required
Unlock this article along with other benefits by subscribing to one of our paid plans.