2022 Q1 Report: Global Trends in Biopharma Transactions

Each quarter, Locust Walk deal team members compile key statistics and trends on strategic transactions and financings. Our 2022 First Quarter Report applies the latest data to analyze current activities in the life sciences deal landscape.

In this report you can find an overview and analysis of the following across the biopharma market in the US, Europe, and Asia (Japan and China):

  • Key performance indicators for the life science market​
  • IPO and private financing activity and performance​
  • Deal activity for strategic partnership and M&A
  • A look ahead and our predictions of the future

Biopharma Indices Summary

The biopharma indices continued their decline in 2022 against a backdrop of continued macroeconomic and political uncertainty, negative investor sentiment and rotation to more value-driven investments

  • 2H 2021 saw the BTK and NBI underperform relative to the S&P by ~18% and ~10%, respectively
  • At the conclusion of Q1 2022, the BTK (~-8%) and NBI (~-12%) continued to underperform
  • While biopharma indices stumbled, the S&P remained relatively steady over the past 12 months and outperformed the BTK and NBI by ~21% and ~26%, respectively
  • With the highest inflation rate in decades and the likely increase in interest rate from the Federal Reserve, generalist capital is exiting biotech in search of more conservative sectors
  • With the recent downturn in public markets, biotech investors have begun to shift their public portfolios in favor of later clinical-stage companies with near-term newsflow, and away from earlier-stage preclinical companies which had received much of the attention during the biotech boom of the last 24 months

Increased M&A in 2022 may provide a catalyst for renewed sector interest 

  • Following the record number of biotech IPOs in 2021, many public biotech companies have the cash on hand to pursue M&A with depressed valuations
  • However, it may take several more months before those valuations reach a level that sparks the anticipated wave of M&A
  • Locust Walk has seen increased seller interest in exploring strategic options