Biotech M&A could soon pick up following slow 2021 start - Jefferies

seekingalpha2021-05-24

Biotech M&A, which has been relatively quiet so far this year, is poised to pick up due to more reasonableprices for biotech companies, according to Jefferies analyst Michael Yee.

"Typically, we see 3-5 [month] corrections…[and] then pharma starts to step in and finalize deals,” he wrote in a note on Friday. "We are now 3 months into a large drawdown and down 30% off highs."

The biggest biotech M&A deal so far this year was Jazz Pharmaceuticals'(NASDAQ:JAZZ)$7.2B acquisitionof GW Pharmaceuticals announced in February.

The second largest deal was Horizon Therapeutics'(NASDAQ:HZNP)$3.05B acquisition of Viela Biowhich closed in March.

Yee cites Horizon as a potential acquisition target.

Others on his radar are: Arrowhead Pharmaceuticals(NASDAQ:ARWR), Ultragenix Pharmaceutial(NASDAQ:RARE), Iovance Biotherapeutics(NASDAQ:IOVA), Allakos(NASDAQ:ALLK), Fate Therapeutics(NASDAQ:FATE), and TG Therapeutics(NASDAQ:TGTX).

Yee also said Biogen(NASDAQ:BIIB), one of the larger biotech names, could be acquired.

The last mega biotech deal was in December 2020 withAstraZeneca's(NASDAQ:AZN) $39B acquisition of Alexion.

Year-to-date, the iShares Biotechnology ETF(NASDAQ:IBB)has no change and the SPDR Biotech ETF(NYSEARCA:XBI)is down 10%.

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精彩评论

  • Khoo12
    2021-05-24
    Khoo12
    Yes 
  • CL777
    2021-05-24
    CL777
    Finally 
  • JonXu
    2021-05-24
    JonXu
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  • Yappy
    2021-05-24
    Yappy
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