Biopharma firms collectively raised $70.97 billion in 2023, a welcome upturn of 17% from the $60.81 billion raised in 2022. Although falling short of the $118.29 billion raised in 2021 and $134.53 billion raised in 2020, by 40% and 47%, respectively, 2023 stands firmly in the third-highest place in BioWorld’s records going back to 2011.

The biopharma industry concluded 2023 on a positive note regarding financings, with an increase of 17% in value over last year. A total of $70.97 billion was raised from financings in 2023, up from $60.81 billion raised in 2022. Value is down, however, from $118.29 billion in 2021 and $134.53 billion in 2020, but is higher than all previous years tracked by BioWorld from 2011-2019. In December, $4.18 billion was raised through 928 transactions in December, down 27% from the $5.74 billion tracked by BioWorld in November.

Clinical trial updates saw a 5.82% increase for the period of January to November 2023 compared to the same period last year. In November, BioWorld reported on 354 phase I-III trial updates. Although marking a decline from the 416 reported in October, the number of updates still surpasses the previous three months.

Echoing trends seen last year, the med-tech industry concluded 2023 with a continued surge in deal value juxtaposed against a more substantial decline in M&A value. Deal value for the year, including licensings, collaborations and joint ventures, reached $10.63 billion from 1,656 deals, the highest annual value in BioWorld’s records.

In November, the U.S. FDA approved a total of 12 drugs, a decrease from 27 the previous month that marked the highest number of approvals since June 2020, as reported by BioWorld. From January to November, FDA approvals reached 167, an increase of 21.9% from 137 drugs approved during the same time period the previous year.

The biopharma industry is still adjusting from the heady days of the COVID-19 pandemic, and nowhere is this so apparent as in financings. The value of financings has returned to what could be called a new normal, down from the surge of capital seen in 2020-2021. However, there are signs that the trend is heading back upward at a steady pace.

Biopharma deals totaled $18.97 billion in November, marking a notable decrease from October’s historic deal value of $44.91 billion. Even still, through the first 11 months of 2023 cumulative deal value reached $194.26 billion, an 18.65% gain over the $163.73 billion recorded in the same period in 2022.

October marked a milestone in biopharma history, with Daiichi Sankyo Co. Ltd. and Merck & Co. Inc.’s $22 billion deal the largest in BioWorld’s records going back to 2014. Tokyo-based Daiichi is granting rights to three of its DXd antibody-drug conjugate candidates for the treatment of multiple solid tumors: ifinatamab deruxtecan, patritumab deruxtecan and raludotatug deruxtecan. The companies will co-develop and co-commercialize the three candidates worldwide, excluding Japan, where Daiichi retains exclusive rights.