Patent expirations, a shrinking IPO window and reduced capital availability amidst higher interest rates are just a few of the challenges faced by the biotech industry in the post-pandemic era, although the mid- to long-term industry outlook is still favorable. The 33rd edition of Ernst & Young’s Beyond Borders report describes these obstacles and more faced by biotech, as well as advice for companies for traversing “a complex path forward.”

Biopharma deal values are continuing to track at a similar pace to last year, down only 0.31% compared to the first five months of 2022, while there have been 173 fewer deals. M&A values are at their lowest value in all years tracked by BioWorld (2016-2023).

Biopharma financings are continuing a faster pace than last year, with $25.82 billion raised in the first five months of 2023, up 20.46% from $21.44 billion in the same time period last year. Value is down compared to 2021’s $59.29 billion and 2020’s $48.03 billion but it is more than 2019’s $23.21 billion from January to May.

Med-tech companies raised $8.65 billion in the first five months of the year, a decrease of 34.9% from the $13.29 billion raised in the same time frame last year. The number of deals is down 33.04% from last year, from 230 to 154.

Biopharma financings are continuing a faster pace than last year, with $25.82 billion raised in the first five months of 2023, up 20.46% from $21.44 billion in the same time period last year. Value is down compared to 2021’s $59.29 billion and 2020’s $48.03 billion but it is more than 2019’s $23.21 billion from January to May.

U.S. FDA approvals had a modest increase during the first four months of 2023 compared to last year, but still fall short of the peaks seen in 2019 and 2021.

Biopharma has experienced relatively stable deal value year-over-year, despite a 24% decline in the number of deals through April. M&As, however, have brought in the lowest amount in years.

Biopharma has experienced relatively stable deal value year-over-year, despite a 24% decline in the number of deals through April. M&As, however, have brought in the lowest amount in years.

Biopharma financings are pacing more than $300 million higher than at the end of April last year, but are well behind the total through April 2021 when the value of financings more than doubled any recent year due to the response to the COVID-19 pandemic. Through the end of April, biopharmas have raised $19.83 billion this year, compared to $17.5 billion through the same month in 2022, $53.7 billion in 2021, $24.04 billion in 2020 and $19.53 billion in 2019.