Big Pharma Could Nearly Purchase Entire Small-Mid Cap Biotech Sector

May 6, 2022

A recent analysis shows that that the top 20 pharma companies combined could purchase over 600 biotechs, nearly every biotech worth less than $5 billion. Big Pharma’s gains from COVID-19 vaccines and therapeutics helped top off its spending power at $300 billion. All 644 SMID-cap biotechs are worth a combined $347 billion, not far out of reach.

According to Kyle LaHucik, “ That is, if Big Pharma is willing to acquire, rather than stick to the increasingly popular licensing deal route. If 2021 is any sign, it will take a lot to get the ball rolling on the M&A front, despite a few deals and a recent hint from Moderna CEO Stéphane Bancel that the Spikevax maker’s BD team is “the most busy they’ve been in a long time.”