Although more than a third of U.S. citizens are fully vaccinated from COVID-19 and society moves closer to normalcy in many parts of the world, the SARS-CoV-2 virus continues to dramatically impact biopharma dealmaking with nonprofit entities, as well as grant awards.
Digital health and diagnostic efforts continue to dominate med-tech deal-making so far in 2021, while activity focused on medical devices has dropped over the last few years. COVID-19 partnerships also have fallen since last year. Digital health accounts for 43%, the largest portion, of deals this year. About 239 deals are targeting this space, including pandemic efforts. Diagnostic efforts represent about 19%, or 103, of the total deals.
Business development among biopharmaceutical companies working on therapeutics for cancer indications has been brisk this year, with 32% of the 654 deals recorded to date by BioWorld involving cancer indications. However public companies in the area haven’t gained much investor enthusiasm, with the BioWorld Cancer index dropping over 18% year-to-date, with 6% of the loss in valuation taking place this month.