The Latest Market Trends Every Biopharma Investor Needs To Know
Zacks Investment Research | May 17, 2017 05:37AM ET
Speaking at MedCity INVEST, a national healthcare investing conference in Chicago hosted by MedCity News, Jonathan Norris of Silicon Valley Bank, alongside Ryan Jalowiecki from PwC, highlighted the latest trends in the public healthcare markets. If you are a serious biopharma investor, you won’t want to miss this.
Big Pharma Influence
As I’m sure many biopharma investors have noticed, there has been a slowdown in the number of IPOs and M&As throughout the industry. After what has been described as a peak year in 2015, deal volume slumped in 2016 and has remained sluggish so far this year.
Interestingly enough, Jalowiecki blamed the slowdown on what has caused some momentary hesitation in several different industries: political uncertainty. With Congress still debating the fate of Obamacare, the American regulatory environment is very much in a state of flux, and that has the ability to make companies hold off on massive deals.
Jalowiecki also said that politics and public perception have put pressure on the bigger drug companies in relation to pricing strategies. He said that, as of late, the big pharma players have “ratcheted down the market’s expectations for ‘go-forward’ pricing.”
Touching on the generics space, Jalowiecki said that “many of the folks have been hampered by pricing,” which has led to an industry-wide strategic reassessment that is focusing on new research and development strategies.
Investors should note that iShares U.S. Pharmaceuticals ETF
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