Continuing its downward trend, BioWorld’s Cancer Index (BCI) has fallen by 19.16% this year, a stark contrast with the broader Nasdaq Biopharmaceutical Index and the Dow Jones Industrial Average, both of which are tracking up by 4.49% and 19.03%, respectively.

A surge in deal activity over the last few months has placed 2021 in the running for beating 2020, the best year on record, and becoming the top year for the biopharma industry to date. BioWorld has recorded 1,680 deals valued at $167.39 billion in 2021 vs. 1,744 deals valued at $159.98 billion by this point last year. That puts 2021 ahead by about 5% on deal values.

Although the BioWorld Biopharmaceutical Index has recovered slightly within the last month, it is showing only a small gain since the start of the year. Up by 2.82%, it is somewhat in line with the Nasdaq Biotechnology Index gain of 4.83%, but significantly beneath the broader markets. The Dow Jones Industrial Average, for example, was up by 17.03% at the end of October.

A comparison of the first 10 months of every year going back to 2000 indicates that the volume and value of IPOs and of venture capital financings are at their highest levels in 2021. Private placements and other similar financings are coming in second to last year, while follow-on offerings – the weakest type of financing this year – fall at about fourth place.

As booster shots become increasingly available and COVID-19 vaccines for young children are introduced into pediatric offices, several potential therapeutics to battle the SARS-CoV-2 virus are lining up for regulatory authorizations.

On target with last year, a total of 87% of funds recorded in 2021 through biopharma collaborations with nonprofit entities by the end of October are focused on COVID-19 pandemic efforts. The pandemic accounts for 54% of the money collected through grants, which is still a sturdy amount but down from 76% in 2020.

Marking September as the second busiest month, 2021 is more than 6% ahead of last year in terms of reported clinical data, although the gap between the two years has narrowed significantly from 26% in April.

Biotech stocks and the overall market have taken divergent paths in the past month, not unlike what was seen throughout 2020, except this time, they are moving in opposite directions. While BioWorld’s Drug Developers Index (BDDI) appeared to be on the upswing only a month ago, it changed course in the final weeks of September.

With a 14% increase in regulatory news over this time last year, 2021 has proved to be the busiest that the biopharma industry has ever seen, as companies continue to seek clearances of their late-stage pipeline products with a backdrop of an unprecedented number of COVID-19 pandemic efforts.

The speed at which the med-tech industry is completing mergers and acquisitions in 2021 is something quite contrary to the typical slowdown seen when the financing window is open wide. But yet, a total of 477 M&As valued at $109.18 billion have closed in the first three quarters this year, more in volume and value than for each of the previous three years, and during what appears to be the second best year on record for financings. The sector has already raised $42 billion. On the other hand, the lack of disclosed terms continues to weigh heavy on deals, making them appear on paper to be significantly below recent years, down by about 73% in comparison with 2020’s first three quarters. Importantly, though, numbers of completed deals for every quarter and for the combined nine months are at their highest levels ever.