Fierce Biotech Q2'24 IPO and M&A Summary

Biopharma deal activity significantly slowed down in the second quarter, with only a few mergers and acquisitions (M&A) and initial public offerings (IPOs) taking place. This deceleration comes after a robust first quarter where pharmaceutical companies utilized some of their substantial cash reserves for similar transactions.

The second quarter was marked by notable deals, one of which was Novartis' acquisition of Mariana Oncology. This acquisition, deemed a strategic move for Novartis, involved an upfront payment of $1 billion. The primary aim behind this acquisition was to integrate Mariana's radioligand assets, which include Pluvicto and Lutathera, into Novartis' portfolio. Mariana's focus on the radioactive metallic element actinium was a significant factor in Novartis' decision, as it offered a unique differentiation in their product line. This acquisition followed other similar moves by major pharmaceutical companies like Eli Lilly and Bristol Myers Squibb in previous quarters.

Another significant transaction in the second quarter was Biogen's acquisition of Human Immunology Biosciences (HI-Bio) for $1.15 billion. This purchase aligned with Biogen CEO Chris Viehbacher's strategy to diversify the company's future. HI-Bio brings with it an anti-CD38 monoclonal antibody that is set to enter phase 3 trials for multiple rare immune-mediated conditions.

Merck & Co. signed the largest deal of the quarter by acquiring Eyebiotech, which focuses on ophthalmology, for $3 billion. This deal comprised $1.3 billion in cash upfront and an additional $1.7 billion in potential milestones.

In the IPO market, the second quarter saw four biotechs preparing to list on the Nasdaq. Actuate Therapeutics announced plans for a $50 million IPO, while Rapport Therapeutics successfully closed its offering at $136 million. Alumis, a biotech specializing in immune-mediated diseases, initially planned for a $274 million IPO but later downsized to $250 million, combining both an IPO and a private placement in late June. On the same day, NK cell therapy biotech Artiva Biotherapeutics also announced plans for an IPO, though details remain sparse at this point.

Telix Pharmaceuticals, a radiopharma-focused biotech already listed on the Australian Securities Exchange since 2017, had planned to join the Nasdaq on June 14 with an expected draw of $183 million, potentially rising to $211 million if underwriters exercised their full option. However, the company decided to pull back its offering at the last minute. Telix stated that the decision to refrain from proceeding with the Nasdaq listing was due to the current market conditions and not out of necessity to raise capital.

Overall, the biopharma industry experienced a slowdown in deal activity during the second quarter, contrasting with the vibrant first quarter of the year. Companies like Novartis, Biogen, and Merck & Co. still made significant acquisitions, while several biotechs prepared for their market debuts, indicating a cautious yet strategic approach to growth and diversification in a fluctuating market environment.