2023 Could Be a Rebound Year for Biopharma M&A

Last year was a down year for biopharma mergers and acquisitions (M&A). With a strong focus on licensing deals, we saw only <$100B in deal activity, down ~150% from its 2019 peak. Rising interest rates and an uncertain economy led many biopharma companies to take drastic action to conserve cash, including widespread layoffs and significant program cuts.

We expect increased deal activity in 2023 in light of the accelerating emergence of biosimilars to biologics markets, pending implementation of the Inflation Reduction Act’s (IRA’s) provisions, and significant scientific strides made in the cell and gene therapy spaces. These deals will be driven by a need to backfill pipelines that will include a strong a focus on M&A and licensing agreements. We have already seen improved deal activity in Q1 of this year with biopharma’s largest acquisition since 2019: Pfizer’s $43B acquisition of Seagen, which will expand their oncology portfolio into the antibody–drug conjugate (ADC) space, a unique technological area that enables more efficient therapeutic delivery. Given these factors, we’re anticipating a stronger year for M&A in 2023 compared to 2022 and are already seeing signs of improvement, albeit in the shadows of an economy still on the verge of a recession.

2023 has the potential to be a rebound year for biopharmaceutical M&A. Amplity Consulting’s M&A experts generated this report to enable our life science clients to keep moving at the pace of innovation.

Click the download button below to read on for a breakdown of the anticipated headwinds, tailwinds, and potential opportunities within 2023’s deals landscape.