Biopharma companies have announced additional layoffs and restructurings in the past few weeks, after more than 7,800 job cuts were reported by BioWorld this year through late April. Through mid-May, total layoffs in the biopharma sector have increased to 9,848.
In April, the value of biopharma deals climbed to $15.28 billion, increasing 84% from March’s $8.29 billion and also up from February’s $7.76 billion, though there was a decline from January’s $27.9 billion. This amounts to a monthly average of $14.86 billion in deal value for 2024, compared to the $18.14 billion monthly average in 2023. Meanwhile, the value of biopharma M&As dipped to $1.33 billion for the month, marking the lowest figure in nearly a year.
Med-tech deal value increased in April, reaching $172.37 million, a 538% bump from March’s $27 million. However, the monthly average for deal value in 2024 stands at $140.68 million, reflecting an 84% decline from the 2023 monthly average of $886.13 million.
The BioWorld Infectious Disease Index (BIDI) has continued to decline in the first four months of 2024, finishing April with a year-to-date decrease of 25.12%. BIDI trailed both the Nasdaq Biotechnology Index, which saw a 4.76% downturn by April’s end, and the Dow Jones Industrial Average, which closed the month with a 0.34% increase for the year. In 2023, BIDI ended the year with a 43.48% decline, preceded by an 83.57% drop in 2022.
In April, the value of biopharma deals climbed to $15.28 billion, increasing 84% from March’s $8.29 billion and also up from February’s $7.76 billion, though there was a decline from January’s $27.9 billion. This amounts to a monthly average of $14.86 billion in deal value for 2024, compared to the $18.14 billion monthly average in 2023. Meanwhile, the value of biopharma M&As dipped to $1.33 billion for the month, marking the lowest figure in nearly a year.
Although the $6.03 billion in biopharma financings raised in April is down from $13.84 billion in financings in March and $22.3 billion in February, the monthly average of $13.29 billion for all financings is up 125% from the average of $5.91 billion a month in 2023.
The BioWorld Cancer Index (BCI) closed out the first quarter of 2024 with a 4.66% increase, slightly down from its 11.07% rise at the end of February. This comes after an outstanding performance in 2023, when it finished the year up by 76.26%. Despite outperforming the Nasdaq Biotechnology Index, which rose by 1.36% in Q1, BCI lagged behind the Dow Jones Industrial Average, which saw a 5.62% increase in the first three months of the year. In contrast, BCI experienced a decline of 41.98% in 2022 and a 36.34% decrease in 1021.
After concluding 2023 up 11.62%, the BioWorld Biopharmaceutical Index (BBI) extended its upward trajectory into the first quarter (Q1), posting a 6.4% increase at the close of March. BBI outperformed both the Dow Jones Industrial Average (up 5.62%) and the Nasdaq Biotechnology Index (up 1.36%) by the end of Q1.
In March 2024, BioWorld reported on 261 phase I-III clinical trials updates, showing a 10.6% increase from February's count of 236 and up from January’s 252. However, March’s tally is an 18.2% decline from March 2023’s 319 updates. The average monthly count of phase I-III updates in the first three months of 2024 stood at roughly 277, compared to 305 for all of 2023.