Oncology - Pharma Deals News, page-147

Merck and Pfizer among top picks as Goldman Sachs projects 2021 biopharma M&A activity | Seeking Alpha

• With an estimated ~$530B war chest in total, large biopharma companies will continue to drive M&A activity in 2021, the analysts at Goldman Sachs predicted in a new analysis of the sector.
• Noting a ~110% YoY rise in deal volumes in February including ~221% YoY growth in U.S. mid-cap deals, the analysts expect that given a favorable environment, the M&A activity could follow the trend set in 2H 2020.
• Merck, Pfizer, Bristol-Myers Squibb, Sanofi, and GlaxoSmithKline are likely to be at the forefront of M&A activity, the analysts argue noting the losses of exclusivity hurting the valuations of potential acquirers.
• Arguing that therapeutic areas remain a priority for many acquirers, the analysts cite oncology and immunology as areas where many companies are exposed to, with a rising interest in neurology and compelling valuation of “late-stage gene therapy” stocks after recent underperformance.