Across the board, from J&J to Pfizer and Eli Lilly, the country’s pharmaceutical giants are facing a patent cliff that could spur M&A as they move to fill out their pipelines and close revenue gaps. Historically, patent cliffs have been a respite for slow M&A cycles. Pharmaceutical companies’ own R&D is usually far from enough to generate the needed additional revenue, so they turn to acquisitions of smaller companies with newly approved or nearly approved drugs to satisfy their shareholders. For VCs hungry for liquidity in a stalled IPO market and early-stage companies struggling to land financing, this patent cliff could be a game-changer.
Read the full article: As Big Pharma’s Next Patent Cliff Looms, Biotech Investors See Dollar Signs //
Source: https://pitchbook.com/news/articles/as-big-pharmas-next-patent-cliff-looms-biotech-investors-see-dollar-signs