Regulatory scrutiny of acquisitions could slow momentum
Biotechnology mergers and acquisitions are rebounding, a promising development for venture capitalists at a time when few startups are going public.
Top drugmakers could soon forfeit billions in revenue as medications lose patent protection. Meanwhile, valuations of smaller biotech companies have retreated from pandemic-era highs, leading to more acquisitions.
“Large pharma still has a lot of cash, and they have a lot of drugs that are going to go generic over the next five to 10 years,” said Mike Perrone, a biotech specialist with financial-services firm Robert W. Baird.
