TLDR:
According to a new report from J.P. Morgan, antibody-drug conjugates (ADCs) were the hottest ticket in the biopharma industry in 2023, driving a spike in licensing deal proceeds. Despite a decrease in overall deal flow, licensing deals, venture investments, M&A, and IPOs stayed fairly high thanks to a flurry of late-stage tie-ups. Biopharma licensing partnerships accounted for $63 billion in total value, with one deal alone accounting for $22 billion. Venture investments closed out the year with $17 billion across 250 rounds, while M&A totaled $128.8 billion across 112 acquisitions. The report highlights the potential for smaller biopharmas to find licensing partners, as large companies are offering larger upfront payments for these deals.
Key Points:
- ADCs drove a spike in licensing deal proceeds in 2023
- Licensing deals, venture investments, M&A, and IPOs stayed fairly high thanks to late-stage tie-ups
- Biopharma licensing partnerships accounted for $63 billion in total value
- Venture investments closed out the year at $17 billion across 250 rounds
- M&A totaled $128.8 billion across 112 acquisitions
- Large companies are offering larger upfront payments for smaller biopharmas
