Biotech stocks make for an interesting study. They represent a high-risk sector, characterized by famously high overhead and long lead times to develop new products. However, they also hold the potential for high rewards when new drugs open up markets with potential sales targets sometimes reaching billions of dollars. It’s not just the future sales potential that fuels the possibilities for rewards; a successful small-cap biotech company, with a newly approved drug, will frequently attract merger and acquisition interest from bigger names in the sector.
That’s the subject of a recent statistical study of biotech mergers conducted by Needham analyst Joseph Stringer. Stringer examined M&A activity in the biotech sector from 2018 through 2Q23 and uncovered data points that should garner investor attention. Firstly, M&A activity has increased in Q2 of this year and is above the historical average. Furthermore, among the 104 public company acquisitions that have occurred since 2018,…
2023-07-14 15:40:34
Source from finance.yahoo.com