- Ed Saltzman, Head, Biotech Strategy, Lumanity
- Dennis Purcell, Founder, Senior Advisor, Aisling Capital
In prior market downturns, “trade sales “have provided the exits unavailable though public markets. However, in this current market, M&As have been nearly as rare as IPOs. One driver perhaps not receiving the attention it deserves is an unprecedented glut of biotech companies with clinical stage programs that now, during the bear market, they are looking to sell to a cadre of buyers that has not increased since the last long capital hiatus back in 2008-10. The result is a supply and demand imbalance which is not, to put it mildly, in favor of sellers. Pharma buyers are struggling to separate wheat from the chaff and are unwilling to pay premium prices for assets that were more highly valued through the bull market years. An additional headwind to deal-making is the Pharma buyers’ elevated perception of commercial risk since many programs are clustered around a limited number of validated targets without proven differentiation. These problems may be especially acute in oncology (maybe close to two thirds of “available” clinical stage assets).
Join us as two industry experts who have seen their share of market cycles discuss lesson from the past and how these can be applied to the unique challenges of today.
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