JAZZ - Biotech M&A may heat up with potential targets Horizon Therapeutics Arrowhead Pharma analyst says

janiecbros/E+ via Getty Images Biotech M&A is poised to heat up again as shares of the SPDR S&P Biotech’s (XBI) have fallen about 25% from their February highs, according to Jefferies. Biotech deals may pick up after a 3-6 month of a large "drawdown" and as prices "normalize" for sellers, according to Jefferies analyst Michael Yee. With "big pharma and biotech flush w/ cash may go after targets now that prices appear to have settled (>$500B of cash in the Russell 3000 HC cos now)," Yee wrote in a note on Friday. Typically after a 3-6 month correction pharmaceuticals companies begin to return to deal making and its also possible that this year pharma may look to deals fearing an FTC in a Biden administration that may put more scrutiny on biotech transactions. Yee also highlighted that so far this year that there only have been two deals for more

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Biotech M&A may heat up with potential targets Horizon Therapeutics, Arrowhead Pharma, analyst says