Pharma Reeling from Volatile 2016

February 21, 2017

February 21, 2017

Reports released today by EP Vantage, the editorial arm of life science market intelligence firm Evaluate, show that for drugmakers dealmaking and venture funding held up over the first two quarters of 2016, buoyed by the retreating bull market. However, as the US presidential election loomed, companies went into lockdown. 

“In terms of pharma & biotech share prices, the volatility of 2016 and the unpredictability President Trump has so far displayed will do little to calm industry nerves. Investors and companies might want to brace themselves for these stormy waters to become the new normal this year. Alongside the political landscape, high drug prices will remain the sector’s gremlin in 2017,” said Amy Brown, author of the Pharma & Biotech report.

The reports key findings include:

  • The Nasdaq Biotechnology Index ended in the red for the first time since 2008

  • The $98.7bn spent on pharma & biotech acquisitions in 2016 was less than half that of the biotech boom’s peak in 2014

  • The fourth quarter saw three venture rounds breaking the $200m barrier, with Moderna Therapeutics exceeding $1bn.

To download the Pharma & Biotech 2016 in Review report, visit www.evaluategroup.com/PharmaBiotech2016Review.  

For the Medtech 2016 in Review report, please www.evaluategroup.com/Medtech2016Review.