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The rise of founder-led, venture capital-backed companies in recent years has coincided with a surge of companies implementing dual-class share structures in connection with their initialpublicofferings. Notable public deals. Amazon to Acquire One Medical for $3.9 DigitalOcean Agrees to Buy Cloudways.
But it wasn’t all carve outs and concerned investors – even with the headwinds in the industry and beyond, there were still several traditional public M&A deals involving biotechnology or medical device companies, as large pharmaceutical companies continued to have cash to deploy for acquisitions. Let’s dig in.
Reverse mergers remain a fixture 2023 opened the door for reverse merger transactions to underperforming small and midsized public life sciences companies that were trading below their initialpublicoffering price and, often, below the value of their cash on hand. What’s next?
Some sponsors, while unable to present compelling take-private proposals to targets, have deployed capital in private investments in public equity (PIPEs) of public targets, marketing these investments as both a vote of confidence for the incumbent board and much-needed liquidity to help the target weather the downturn.
That said, some industry participants still looked to capitalize on anticipated vulnerabilities in their competitors pipelines with meaningful M&A bets such as Eli Lillys $2.3 By 2030, more than 190 commercial drugs will lose patent exclusivity , putting at risk $236 billion in Big Pharma sales.
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