valuation thoughts, page-313

On the other hand, it's not like the science has suddenly become worse, it's not like drug pipelines have shrunk. It's not like big pharma can gain competitive advantage in-house without having to make any acquisitions (I believe upwards of 80% of major revenue generating drugs for big pharma are externally acquired anyway). Patents that protect revenues will still continue to lapse. Big pharma need to still make acquisitions and collectively, I believe big pharma actually has enough cash right now to buy up pretty much the entire smid-cap biotech world.

Suspect some interest will return to the sector alongside an uptick in transactions (and trial readouts that have been delayed due to covid), but acknowledge the macro situation is making investors nervous.