Biotech dealmaking keeps adding up
XBI•BioBucks data show 76 biotech and biopharma deals worth nearly $208 billion have been announced this year, up from 49 worth roughly $149 billion at midyear. Reports of AstraZeneca making a non-binding offer for Rhythm Pharmaceuticals last month sent Rhythm shares up 28%.
1. Deal activity grows
Biotech and biopharma dealmaking has continued despite slower third-quarter activity. Since June 30, the sector has added 27 deals and nearly $59 billion in disclosed value, following an exceptional pace in the second quarter.
2. Patent expiries drive interest
Reports that AstraZeneca made a non-binding offer for Rhythm Pharmaceuticals through its rare-disease unit Alexion last month have put biotech M&A back in focus. The deal has not been confirmed. Jefferies said interest in Rhythm was unsurprising, citing its growing revenues as a possible way to offset upcoming losses of exclusivity tied to patent expirations.
3. Biotech ETF performance
The S&P Biotech ETF has fallen about 6% from its August peak but remains up roughly 30% for the year, comfortably outperforming the S&P 500.
