Biopharma Dealmaking in Uncertain Times

The pharma industry is facing a wave of loss of exclusivity estimated at $200B through 2026 and an insufficient de-risked pipeline to make up for that lost revenue. The biotech pipeline remains innovative but is not large enough to overcome this deficit alone. The balance sheet of the industry is estimated over $1T and that can be deployed towards these channels. As a result, the biopharma industry is facing a conundrum on how to continue to innovate while using BD&L and M&A as valid vehicles to continue its growth trajectory in a macro environment that is showing a slowdown in GDP growth as well as increased cost of capital, continued volatility, supply chain constraints, and geopolitical tensions.

The question is whether there are sufficient assets in size and differentiation to address unmet medical needs and can help lift the industry back to its growth trajectory.