Pharmaceutical and biotech firms have significantly ramped up acquisitions spending, with $85bn spent in the first five months of this year, compared to just $35.6bn during the same period in 2022 and $49.1bn the year prior. Experts attribute the surge to large cash reserves gained during the pandemic, as well as investor concerns for future growth prospects. The expiry of patents throughout the decade may exacerbate revenue squeezes, as it exposes $200bn of top branded drugs to generic competition. Bioharmaceutical deal values were $127bn in 2022 and $149bn in 2021. However, concerns have been raised by executives and sector analysts centring on the growing threat of US antitrust regulations and government intervention. Last month the Federal Trade Commission filed to block Amgen’s $28bn takeover of Horizon Therapeutics over increased pharmaceutical consolidation pushing up prices for patients. The action may dampen M&A activity whilst the sector continues to face funding constraints and startup survival challenges.
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