Biotech licensing, M&A deals dropped in 2012
BayBio Partner Evaluate Pharma reported mergers and acquisitions were down compared to the previous year. According to a new report from EP Vantage, the award-winning editorial team at Evaluate Pharma, total licensing-deal value declined 19 percent, to $20.9 billion, and the number of products licensed dropped from 1,037, to 759. Merger and acquisition deals reached $42.6 billion, down 24 percent.
In comments to Genetic Engineering & Biotechnology News, EP Vantage Editor Lisa Urquhart said that this could translate to fewer deals struck at the riskier early stages of development unless they are in a hot area, such as HepC, cutting the number of deals. The value of deals might also fall as companies try to mitigate their risk exposure by spending less on up-front fees and back-end loading deals.