Biopharma takeovers dry up

As target company valuations surge takeover activity falls off. This pattern has played out fairly reliably over recent years, but the second quarter of 2021 suggests that other factors might be at play too.

The three-month period saw biopharma M&A activity virtually grind to a halt, with only one deal worth more than $1bn, and quarterly transaction values and deal counts come in at the lowest level in five years. Yet, while biotech is still in an overall bull market, the year so far has been decidedly choppy, which normally would have provided plenty of buying opportunities.