designer491 Wells Fargo released its annual biopharma M&A screen this week, including weight loss drug developer Viking Therapeutics ( VKTX ) and gene editing firms CRISPR Therapeutics ( CRSP ) and Intellia Therapeutics ( NTLA ) in its list of potential acquisition targets for 2024. The investment bank identified 31 such companies in the biopharma SMid-cap space that demonstrate a high or medium fit to large-cap pharmaceutical companies: AbbVie ( NYSE: ABBV ), Amgen ( NASDAQ: AMGN ), Bristol Myers ( NYSE: BMY ), Gilead ( NASDAQ: GILD ), Merck ( MRK ), and Pfizer ( PFE ). The report comes at a time when biopharma M&A dealmaking is on the rise.
Data analytics firm GlobalData said in a recent release that deals valued at $1B or higher in the pharmaceutical and biotechnology industry rose 71% in Q1 2024 compared to a year ago. Detailing its screening method, Wells Fargo said it initially selected biopharma firms valued at $750M-$20B and then selected those meeting its revenue and growth criteria. The final list included companies indicating a strategic fit for large-cap biopharma and those unlikely to raise antitrust concerns in the event of an M&A.
The firm has had success with its previous predictions: eight high/medium fits that made it into its 2023 biopharma M&A screen got acquired last year, while others, including Point Biopharma, which Eli Lilly ( LLY ) bought, met the criteria for strategic fit but not those for valuation and growth. Wells Fargo’s potential SMid-cap M&.
