EY report shows Biopharmas shift from M&A to strategic partnerships to boost innovation

Long before COVID-19 emerged, few life sciences executives expected a repeat of the 2019 mergers and acquisitions (M&A) show, when four megadeals drove the annual deal total to $306 billion.

With many biopharmas busy integrating the prior year’s acquisitions and with strong valuations and financings creating a seller’s market, odds were high that the M&A climate would cool. However, as COVID-19 accelerated in March, sending economies around the globe into hibernation, life sciences dealmaking experienced its own ice age.

Global life sciences mergers and acquisitions activity totaled $219 billion in 2021, up from $159 billion in 2020, mainly driven by medtech ($111 billion), according to the 10th edition of the annual EY M&A Firepower report.