Biotech deal activity to pick up pace after recent share pullback- Jefferies

Fate Therapeutics

21/05/2021 16:28

** The recent three-month pullback in the SPDR S&P biotech
ETF  XBI.P  may spark M&A deal activity among big pharma
companies and drug developers flush with cash, Jefferies says
    ** XBI is down 28% from February highs as inflation and
other macroeconomic issues caused funds to rotate out of biotech
and into post-pandemic recovery areas, brokerage says
    ** Our analysis of biotech M&A suggests big pharma tends to
acquire during upswings, and certainly after significant
pullbacks - Jefferies
    ** Large biotech and pharma cos, such as Gilead Sciences Inc
 GILD.O  and Vertex Pharma  VRTX.O , have all publicly stated
they remain very active and prioritize business development,
brokerage says
    ** Horizon Therapeutics  HZNP.O , Arrowhead Pharma  ARWR.O ,
Ultragenyx Pharma  RARE.O  and Fate Therapeutics  FATE.O  are
among brokerage's list of potential M&A targets for 2021-22
    ** Biogen Inc  BIIB.O , which awaits the U.S. health
regulator's decision on its Alzheimer's drug candidate
aducanumab by June 7, could do deals irrespective of the
decision, Jefferies says

 (Reporting by Manojna Maddipatla in Bengaluru)
 ((manojna.kalyani@thomsonreuters.com; within the U.S. +1 646
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