PFE - Merck and Pfizer among top picks to lead 2021 biopharma M&A activity: Goldman Sachs

With an estimated ~$530B war chest in total, large biopharma companies will continue to drive M&A activity in 2021, the analysts at Goldman Sachs predicted in a new analysis of the sector.Noting a ~110% YoY rise in deal volumes in February including ~221% YoY growth in U.S. mid-cap deals, the analysts expect that given a favorable environment, the M&A activity could follow the trend set in 2H 2020.Merck ([[MRK]] +0.5%), Pfizer ([[PFE]] +0.2%), Bristol-Myers Squibb ([[BMY]] -0.2%), Sanofi ([[SNY]] -0.3%), and GlaxoSmithKline ([[GSK]] -0.5%) are likely to be at the forefront of M&A activity, the analysts argue noting the losses of exclusivity hurting the valuations of potential acquirers.Arguing that therapeutic areas remain a priority for many acquirers, the analysts cite oncology and immunology as areas where many companies are exposed to, with a rising interest in neurology and compelling valuation of “late-stage gene therapy” stocks after recent underperformance.Arvinas ([[ARVN]] -1.1%),

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Merck and Pfizer among top picks to lead 2021 biopharma M&A activity: Goldman Sachs