KRTX - 3 Potential Biotech Buyout Targets In 2024

2024-03-19 10:16:19 ET

Summary

• Biotech M&A activity surged at the end of 2023, which helped the small biotech sector surge by 50% off its late October lows.
• Deal volume should remain strong in 2024 as large pharma concerns have large cash balances, face key patent expirations and desire entry into new markets.
• Three logical buyout targets in the biotech/biopharma space in 2024 are highlighted below.

The biotech sector saw a surge of M&A activity at the end of 2023. Major deals to acquire ImmunoGen, Inc. (IMGN), Cerevel Therapeutics Holdings, Inc. ( CERE ) and Karuna Therapeutics, Inc. ( KRTX ) all took place in the final five weeks of last year. Each purchase contained a substantial buyout premium as well for shareholders. The uptick in deal volume was one of key drivers of the 50% rally that took place from the SPDR® S&P Biotech ETF ( XBI ) off its late October lows. That rally has ebbed in recent weeks as has new deal flow....

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