While the fourth quarter (Q4) of 2022 raised the most money of any quarter this year, the overall amount collected through med-tech financings – $38.3 billion – is still 22.3% less than 2021’s $49.3 billion raised.
While it made a sturdy effort as biopharma companies opted for licensing deals over M&As in 2022, the year did not surpass 2021 in deal values, falling about 3.5% short. Lackluster M&A values dropped to their lowest levels in five years and were down by 35.6% compared with 2021.
While it made a sturdy effort as biopharma companies opted for licensing deals over M&As in 2022, the year did not surpass 2021 in deal values, falling about 3.5% short. Lackluster M&A values dropped to their lowest levels in five years and were down by 35.6% compared with 2021.
The $60.8 billion collected by biopharma companies throughout 2022 is a sharp drop from each of the two prior years, down by 48.6% from 2021 and 54.8% from 2020. Each were standout years by any measure and a direct result of the investment fervor for the industry brought on by the COVID-19 pandemic. That exuberance diminished in the last year as investors tightened their grips due to economic uncertainties.
In the fourth year of the COVID-19 pandemic, the World Health Organization is monitoring two omicron subvariants, BA.5.2 and BF.7, causing a surge of COVID-19 cases in China. It also is keeping abreast of rising XBB.1.5 cases and declining BQ.1 cases in Europe and the U.S., where hospitalizations have increased in recent weeks. Global cases in the last month are trending below the same timepoints in 2020 and 2021, and deaths are significantly down, suggesting a move toward an endemic stage.
In the fourth year of the COVID-19 pandemic, the World Health Organization is monitoring two omicron subvariants, BA.5.2 and BF.7, causing a surge of COVID-19 cases in China. It also is keeping abreast of rising XBB.1.5 cases and declining BQ.1 cases in Europe and the U.S., where hospitalizations have increased in recent weeks. Global cases in the last month are trending below the same timepoints in 2020 and 2021, and deaths are significantly down, suggesting a move toward an endemic stage.
Phathom Pharmaceuticals Inc.’s shares sank 31% on news that the U.S. FDA will not take action on the company’s NDA for oral small-molecule potassium-competitive acid blocker vonoprazan by the Jan. 11 PDUFA date.
In one of the first large preclinical deals of 2023, Evoq Therapeutics Inc. is licensing for up to $685.5 million its Nanodisc technology to Gilead Sciences Inc. to develop new rheumatoid arthritis and lupus treatments. The potential payout includes up-front fees, an option exercise and milestone payments across both programs. Evoq also could receive tiered royalties on any sales that result.
The proportion of clinical data focused on COVID-19 therapeutics and vaccines has dropped from 21.3% in 2020 at the height of the pandemic to only 7.7% for 2022.
U.S. FDA approvals in 2022 are down by 31.3% compared with last year and clearances for new molecular entities are at the bottom of all recent years. As of Dec. 20, the agency had approved 143 drugs and biologics in 2022, including supplemental filings, just slightly higher than the 138 approvals in 2016, but far behind the 208 approvals recorded in both 2021 and 2017.
