Biotech investors pray for a takeover miracle

Last year failed to deliver much fizz on the M&A front, though the final months of the year raised hopes for a pick-up in activity. Unfortunately, the week of the JP Morgan Healthcare conference, a favourite time for biopharma companies to unveil their latest moves, was bereft of big-ticket buyouts.

True, a string of smaller transactions did emerge, and few would dispute that the sector remains an active deal-making space. But with US biotech stocks languishing investors are desperate for sentiment to improve. A clear signal that the large end of the sector is putting serous money to work could help trigger an upturn.