Each quarter, Locust Walk deal team members compile key statistics and trends on strategic transactions and financings. Our 2022 Second Quarter Report applies the latest data to analyze current activities in the life sciences deal landscape.

The steady deterioration of the life science public market has had far reaching ripple effects to other parts of the ecosystem, from a deep decline in public and private financings to the rise in high value partnering and M&A transactions.  In this quarter’s market conditions report, Locust Walk reviews the factors driving current negative sentiment and provides our advice for navigating the road ahead.

We believe the industry has further to go before conditions reset and a steady recovery can begin.  With the public market quiet and the private markets more selective, companies of all sizes are showing increased interest in strategic partnerships as a source of non-dilutive financing.  Big Pharma has remained on the M&A sidelines, until recently with the announcement of a flurry of large transactions.  Ultimately, this deal activity, combined with reset valuations and positive news flow, may be our path to recovery.

Despite the near-term challenges, Locust Walk remains optimistic about our industry’s long-term fundamentals.  While the sector is now experiencing overhang from its status as a previously hot area, Biopharma’s fundamental societal role and advancements in our understanding of disease and how to address them have not changed.  We invite you to read our report and would welcome the opportunity to discuss its contents with you.