The deadly SARS-CoV-2 virus that has cost nearly 6 million lives worldwide and disrupted global economies has brought the biopharma industry $82 billion in sales revenue since the start of the pandemic, with guidance for another $88 billion this year.

Med-tech financings in 2022 appear to be off to a bumpy start. The total amount raised in the first six weeks of the year is at its lowest point in comparison with each of the previous three years. Nevertheless, venture capital rounds, showing no signs of slowing from 2021’s record year, are accounting for the bulk of the activity.

The biopharmaceutical sector is stumbling through the early months of 2022, as investors appear to be pulling back from the enthusiasm that marked much of the last two years. BioWorld’s Biopharmaceutical Index (BBI) is down 4.2% through last week and the Nasdaq Biotechnology Index shows a drop of more than 15%, while the Dow Jones Industrial Average (DJIA) has likewise fallen 5.58%. In contrast, BBI had a 10.5% gain in 2020 and a 5.93% gain in 2021. While each of those years represent the top two years for financings in the history of the industry, 2022 appears to be lagging in that regard as well, with January financings down by 55% over the prior year.

Med-tech deals are showing a 136% increase in value, partially due to rising interest in digital health technologies, and despite decreasing activity focused on the COVID-19 pandemic. While deal values are up, the opposite is true for M&A values. They have fallen by 15% in comparison with the same time frame last year.