There are at least two ways to look at biopharma deals and M&As in 2023. Through one vantage point, the volume of both, and the value of M&As, are at their lowest levels in at least five years – and deal values have declined by 8% compared with 2022. From another perspective, however, M&As appear to be picking up, and those same declining deal values in the first half of 2023 represent the third highest amount since 2017.

In June 2023, biopharmas collectively raised $6.82 billion through 109 financing transactions. The amount raised is 32.95% more than last June’s $5.13 billion, and the number of transactions is up 26.74%, compared to 86 in June 2022. This echoes the 23.34% increase seen in financings in the first half of 2023 compared to last year.

Although biopharma investors pulled back in 2022 – largely a response to freely flowing funds the previous two years during COVID-19 surges – they are cautiously returning to the sector, as the industry has raised $32.8 billion in the first half of 2023, a 23.6% jump over the same period last year.

Both the value and number of reported biopharma nonprofit deals has fallen significantly, being at the lowest amount in the past five years. Compared to the first five months of last year, the value of biopharma nonprofit deals has decreased by about 63%. Meanwhile, money raised via grants has fallen slightly, 6.11%, but is vastly less than the value and number seen in 2020.