Pharma M&A resurgence: An overview of recent deal-making trends

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After something of a slow year in 2022, mergers and acquisition (M&A) activity is ramping back up in the pharma and biotech sector. There have been several especially large M&A deals in the past few months. Examples include Pfizer’s (NYSE:PFE) $43 billion acquisition of Seagen, and Merck’s (NYSE:MRK) $11 billion purchase of Prometheus Biosciences. In December 2022, Amgen (Nasdaq:AMGN) said it would scoop up Horizon Therapeutics for almost $28 billion.

What’s fueling the M&A uptick?

Factors driving the uptick include an upcoming patent cliff from 2026 to 2029, pricing pressure from the U.S. Inflation Reduction Act and lower equity valuations, according to Moody’s Health Care Quarterly: April 2023.

For instance, the Amgen acquisition of Horizon could help the firm offset a potential $30 billion sales shortfall it may face as a result of growing b…

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