BUZZ-Biopharma dealmaking on way to record year, says HSBC
Eli Lilly and Company LLY | 0.00 | |
Nuvalent, Inc. Class A NUVL | 0.00 | |
AbbVie, Inc. ABBV | 0.00 | |
Gilead Sciences, Inc. GILD | 0.00 | |
GlaxoSmithKline plc Sponsored ADR GSK | 0.00 |
** HSBC says biopharma dealmaking is "on the way to a record deal year"
** Brokerage says large drugmakers are using deals to strengthen pipelines and address future growth concerns as key medicines face patent pressure
** Notes Gilead GILD.O spent about $11 billion upfront on three acquisitions till April, Eli Lilly LLY.N spent over $13 billion till May
** "The more interesting acquisitions, in our view, have potential to change the market's view of the acquirer or just take the edge off any growth concerns," HSBC says, citing AbbVie's ABBV.N Apogee deal, GSK's GSK.L Nuvalent acquisition and Biogen's BIIB.O Apellis purchase
** Oncology segment with most deal activity, followed by immunology, unsurprising given market sizes and innovation - HSBC
** HSBC says licensing values are rising, helped by improved innovation outside developed markets, growing interest in partnerships covering multiple products