The number of biopharma deals with nonprofit or government entities has dwindled in recent months, while industry grants are climbing. Combined, however, a total of 936 bio/nonprofit deals and grants worth $11.17 billion is down by 37% in comparison with last year’s $17.8 billion and by 58.7% in comparison with 2020’s $27 billion. The volume also is down significantly by 16.8% from 2021 and by 33.4% from 2020.
A large notes offering this month and a pick-up in public raises have boosted med-tech financings, which are now tracking similarly with 2019. So far this year, the med-tech industry has raised $35.7 billion through 457 transactions. The amount raised is down by 23% in comparison with the same time frame in 2021, although a few months ago that gap was 48%. The current volume is down by 25.4%.
Med tech firms are becoming quite familiar with the world of digital health in recent years, but this has often been a pairing of strange bedfellows at best up to now. A new report by Accenture on industry adoption of digital health lays out some of the reasons for that, but some impediments come from government, such as the lag in development of regulatory policies for artificial intelligence (AI) and software as a medical device (SaMD).
A mega-deal and high-money buyouts may have given a boost to BioWorld’s Drug Developers Index in October, but safety issues, money troubles and failed trials continue to hold stocks down. Compared with the broader markets, drug development companies are showing the same ups and downs, influenced by rising inflation and a struggling economy, as well as uncertainties caused by war, the COVID-19 pandemic and politics.
Despite coming out strong earlier this year, biopharma deals have slowed significantly, with values now falling behind 2021 by 7.6%. In August, deals were ahead of all recent years, showing a 7% increase over last year. Through early November, the industry has completed 1,296 deals, including licensings, joint ventures and collaborations, valued at $154.6 billion.
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