Few in the biopharma space expected 2024 to provide a speedy turnaround after the trials of the last couple of years.
Headwinds like the Inflation Reduction Act (IRA) are going nowhere and are joined by new legislative moves such as the BIOSECURE Act, which continues to fuel uncertainty. Add to that the looming US election, geopolitical challenges around the world, and tough financial markets and we have a recipe for more halting progress.
But there is progress, albeit with caveats. Our latest analysis of Evaluate’s data shows that IPOs picked up in the third quarter with the pipeline looking positive for the final three months of the year. There is still a long way to go before we can declare the IPO window truly open, however, while the average premiums of the newly-public companies remain negative.
There’s more positive-ish news on the venture funding front as well. While the third quarter saw a reduction in investment compared to Q2, the total of $6.6bn raised was higher than in the first quarter and means that 2024 has already surpassed the total VC investment from 2023. It’s a low bar to clear, but for the many biotechs trying to keep the lights on, it’s a step in the right direction.
The same cannot be said for M&A. Just 22 deals took place in Q3 and those that did were small, leading to a total deal value of under $10bn. When the top five list includes two deals of under $1bn, you know it’s been an underwhelming quarter.
As always, our quarterly round up investigates the investment and dealmaking (or lack thereof) in the industry. Buckle up, it’s still a bit bumpy.
