2023-04-26 11:30:00 ET
With a wave of patent expirations set to sting some of the biggest drugmakers, pharma companies have been steadily turning to mergers and acquisitions to fill key holes in their pipelines and product portfolios. This year, for example, Pfizer paid a whopping $43 billion for cancer drugmaker Seagen , Merck dished out nearly $11 billion for the inflammatory bowel disease player Prometheus Biosciences , and GSK spent $2 billion to acquire the specialty medicines company BELLUS Health .
With biotech valuations at multiyear lows and several companies still in need of additional revenue sources, this trend is expected to continue for the foreseeable future. Here are three biotechs that could become top targets for big pharma companies on the hunt for undervalued assets.
Madrigal Pharmaceuticals (NASDAQ: MDGL) makes this list as a result of its late-stage nonalcoholic steatohepatitis (NASH) candidate resmetirom. Recently, the Food and Drug Administration (FDA) granted the drug its Breakthrough Therapy designation, setting the stage for an expedited regulatory review later this year.
For further details see:
3 Biotechs That Might Get Bought Out in 2023