PwC's mid-year deals outlook: PLS deals plummet, but pick up expected

In PwC’s 2022 mid-year deals outlook  report released on Friday, the firm finds that, despite a slow start for the pharmaceutical and life sciences sector, the industry is headed toward a rebound during the second half of the year.

Many large pharma players are flushed with cash, biotech valuations have been normalizing after a boom market and the 2025 patent cliff is rapidly approaching - setting the stage for a strong deal environment.

Increased scrutiny from the US Federal Trade Commission (FTC) around larger deals could mean that 2022 will be a year of bolt-on transactions in the $5 to $15 billion range as pharma companies take multiple shots on goal in order to make up for revenues lost to generic competition in the remainder of the decade. However, don’t rule out the potential for larger deals ⁠- consolidation is good for the health ecosystem and drives broader efficiency.