While most of the 30 stocks that comprise BioWorld’s Drug Developers Index (BDDI) are trading down for the year, the three showing the most upward movement in 2021 include a company at the forefront of COVID-19 vaccine development, an RNAi therapeutics firm that became a multibillion-dollar acquisition target, and a neurological disease company with one marketed product.
Similar to 2020, the COVID-19 pandemic has dominated both biopharma deals with nonprofit entities and grants in 2021. Combined, pandemic deals and grants account for 87% of the total value, but only 22% of the volume, for the year. Through the week of Christmas, BioWorld has recorded 388 grants for the industry, valued at $2.94 billion, and 845 bio/nonprofit deals worth $21.44 billion. Of those, 82 grants worth $1.4 billion and 194 deals worth $19.8 billion involved therapeutic and vaccine development or supply agreements for COVID-19.
The largest swings in stock price in 2021 can partly, or mostly, be attributed to the COVID-19 pandemic, as biopharma solutions either saved the world or fell short, depending on the newest emerging variant. Those ups and downs have led the BioWorld Biopharmaceutical Index to a nearly flat position in comparison with the beginning of the year. It is up by only 0.33%. The Nasdaq Biotech Index, however, is up 4.6%, while the Dow Jones Industrial Average, representing the broader markets, is up by 14.13%.
Although 2021 med-tech deal volume is 13% higher than last year, the deals represent less than half the value recorded in 2020. The industry has completed 1,576 deals, including licensings, collaborations and joint ventures, through mid-December of 2021. They are valued at $2.13 billion. A total of 573 M&As, on the other hand, have reached $144.75 billion, a 282% rise over 2020.
With a few weeks left in the year, the biopharma industry has raised a total of $116.18 billion through 1,506 transactions, both of which are second only to 2020.
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