Canaccord Genuity expects more deals with orphan drugs, biologics
04/04/2023 16:27
** Canaccord Genuity says deals involving biologics or
orphan drugs - both of which are protected from Medicare price
cuts - likely to become more common in 2023
** Brokerage notes that 80% of deals thus far in 2023
involve either a biologic product or an orphan drug
** Canaccord expects a particular focus on orphan cancer
drugs going forward, specifically for small molecule drugs
** Brokerage continues to expect "fewer, smaller" cash
deals, says larger deals could increase by 2023-end if overall
interest rates begin to decline
** Says Pfizer-Seagen deal is a "less common" M&A event
given the current interest rate environment - brokerage
** Believes Seagen's cancer drug Adcetris will not be
protected from Medicare price cuts long term as it has both
orphan and non-orphan tags for different indications - Canaccord
(Reporting by Mariam Sunny)
((Mariam.ESunny@thomsonreuters.com;))