KRTX - Deal Activity Could Jumpstart Biotechnology

Summary

• Recent clinical successes and M&A could bring interest back to biotechnology, especially among mid-capitalization names with derisked or approved products.
• Restructuring, corporate activity, and COVID-19 revenues have significantly improved the funding positions of many large biopharma companies, providing ample dry powder for M&A.
• While smaller-cap biotechs thrive in clinical development, larger caps have the infrastructure to successfully launch and distribute new treatments.
• For large-cap therapeutics, a substantial wave of patent expirations is looming in the second half of the decade, creating increasing urgency for a new innovation cycle.

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