Late M&A bonanza stokes healthcare dealmakers ahead of JPMorgan conference
By David Carnevali
NEW YORK (Reuters) -Healthcare dealmakers are making their way to San Francisco for a major industry conference, optimistic that more deals are in the offing after a wave of biotech company takeovers at the end of last year.
The four-day JPMorgan Healthcare Conference beginning on Monday is expected by organizers to attract over 8,000 people, including delegations from the world’s largest drugmakers, a signal of a return to business a usual after fewer participants were invited last year over COVID-19 concerns.
Last month alone, drugmakers including AbbVie (NYSE:ABBV), Bristol Myers (NYSE:BMY) Squibb and AstraZeneca (NASDAQ:AZN) announced roughly $25 billion worth of U.S.-listed biotech deals, according to data provider LSEG Deals Intelligence.
Overall, global M&A activity in the healthcare sector grew 8% on an annual basis to $365 billion in 2023, lagging the previous five-year average spending of $432 billion, LSEG calculated.
“We've had an uptick of M&A recently, we're seeing stocks rebound with the market recovery and interest rates lowering,” said JPMorgan global head of healthcare investment banking Mike Gaito, who will interview CEO Jamie Dimon on the opening day. “People are open for business.”
Among the hottest topics will be the wildly popular weight-loss drugs revolutionizing the fight against obesity that have established Eli Lilly (NYSE:LLY) and Novo Nordisk (NYSE:NVO) as two of the world's most valuable companies.
Analysts forecast current drugs and other obesity treatments in development could garner $100 billion a year by the end of the decade.
Gaito said other companies are feeling the pressure to get into the space, and those that are want to be able to offer other treatment
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