Stars aligned in favor of M&A activity in biotech industry - Piper Sandler

Kinnate Biopharma

10/11/2021 11:57

** The stars are aligned for M&A deals in the biotech
sector, with the valuations of small and mid-cap drug developers
having moved lower this year and with potential acquirers such
as Biogen  BIIB.O  and Novartis  NOVN.S  being either in a
position of need or strength or both - Piper Sandler
    ** Drug developers Ultragenyx Pharma  RARE.O , Biomarin
Pharma  BMRN.O , ALX Oncology Holdings  ALXO.O  and Kinnate
Biopharma  KNTE.O  are among Piper's list of companies that make
good near-term targets for M&A, given their potential strategic
fit with acquirers
    ** There has been a relative dearth of M&A deals this year,
combined with political rhetoric highlighting M&A as a source of
high drug prices, brokerage says
    ** It takes just a few high profile deals for mid-caps to
move higher, brokerage says, adding that the drug pricing policy
environment is shifting and the time is ideal for wary investors
to return to the biotech industry
    ** The 267-membered Nasdaq Biotech index  .NBI  is up ~3.4%
YTD, compared with a ~19% YTD jump in the NYSE composite index
 .NYA  

 (Reporting by Manojna Maddipatla in Bengaluru)
 ((manojna.kalyani@thomsonreuters.com; +91  8061822700;))