Although efforts focused on COVID-19 continue to fade and there are fewer collaborations than in previous years, the biopharma industry has recorded record value from mega-deals in the first quarter (Q1) of 2022, topping all recent years, as executives continue to opt against costly mergers and acquisitions.
In a return to the pre-pandemic days, biopharma deals with nonprofit or government entities and industry grants appear to be tracking closer to 2019 figures, as the flurry of activity over the last two years dissipates. Through mid-April in 2022, BioWorld has tracked 246 bio/nonprofit deals worth $1.02 billion, and a total of 86 grants valued at $328.13 million.
Although efforts focused on COVID-19 continue to fade and there are fewer collaborations than in previous years, the biopharma industry has recorded record value from mega-deals in the first quarter (Q1) of 2022, topping all recent years, as executives continue to opt against costly mergers and acquisitions.
Biopharma financings for the first quarter of 2022 are at a five-year low, with 65.8% less money and 53% fewer transactions than a year ago. The industry raised $13.1 billion through 249 financings, compared with $38.3 billion from 529 transactions in 2021.
Biopharma financings for the first quarter of 2022 are at a five-year low, with 65.8% less money and 53% fewer transactions than a year ago. The industry raised $13.1 billion through 249 financings, compared with $38.3 billion from 529 transactions in 2021.
After COVID-19 reached a pandemic peak in January due to the omicron variant, infections in the U.S. are now hitting the lowest levels since March of 2020. During the past week, there were 195,963 confirmed SARS-CoV-2 infections in the country, according to Johns Hopkins University data. That is 5.5% fewer infections than the same week two years ago and 56% fewer than last year. Deaths are also down to 5,602 for the week, although there were lower points in the spring and summer months of 2020 and 2021.
After hitting a low in late February, BioWorld’s Neurological Diseases Index is rebounding, although it is still down by 8.9% this year, following the same path of the broader markets.
For the first time this year, BioWorld’s Biopharmaceutical Index has entered positive territory, now showing a modest rise of 3.2% as the world limps further away from the worst of the COVID-19 pandemic. Despite the Russian invasion of Ukraine, rising inflation, and skyrocketing gas prices, the biopharma industry remains center-stage when it comes to preparing for another unexpected health crisis and for harnessing the knowledge of the last two years to fight stubborn diseases such as cancer and Alzheimer’s disease.
A spring of hope has emerged for BioWorld’s Drug Developers Index (BDDI) with stocks moving in a positive direction in recent weeks, much in line with the broader markets. The BDDI is currently down for the year by 15.5%, but that is an improvement over the 21% decline at the end of February. Likewise, the Nasdaq Biotechnology Index and the Dow Jones Industrial Average are showing similar upward trajectories, but are still down by 11.1% and 4.2%, respectively. It is the first time this year stocks have begun to rise.
The tides have turned for med-tech financings as private companies are now raising the largest proportion of money. In the early months of 2021, 2020 and 2019, public companies took the greatest share. However, amounts raised overall are down by 50% over the same period of 2021 and the number of transactions has fallen 17%.
