How it feels in the eye of an M&A bidding war

A growing number of biotechs are defying the perception that you need the might of big pharma to launch a new drug. But there’s always the prospect of an offer that simply can’t be refused. Three leaders who recently sold companies – Whit Bernard (Metsera), Mike MacLean (Avidity), and Gregory Kunst (Aurion) – shared their experiences, and their views on M&A trends in the sector, at RBC’s recent Global Healthcare Conference.
Key points:
Metsera managed to stay focused on business through a high-stakes bidding war.
A strong sense of its own value helped Avidity to its Novartis buyout.
In a tough capital-raising landscape, biotechs need to be open to partnerships with bigger firms.
While the patent cliff is spurring pharma deals, corporates have a variety of M&A objectives.
A series of successful drug launches by small innovators may signal the end of investors’ ‘short the launch’ strategy.

Introductions [00:07]

Host Joe Colletti introduces highlights from the M&A panel at RBC’s Global Healthcare Conference, featuring Brian Abrahams and colleagues posing questions to Whit Bernard (Metsera), Mike MacLean (Avidity), and Gregory Kunst (Aurion).
Biotech histories [01:01]

Each of the execs outlines the background to their former companies and the therapies they developed.
Avidity’s experiences [05:43]

Mike MacLean discusses the experience of negotiating with Novartis, through multiple bids and a decision by Avidity to pursue its own capital raise before the eventual acquisition.
Metsera’s experiences [09:32]

Whit Bernard recalls how Metsera responded to becoming the subject of a competitive deal between Pfizer and Novo Nordisk.
Capital raising methods [11:53]

Gregory Kunst suggests CEOs should be open to raising capital through strategic partnerships as well as traditional institutional funding.
What pharmas want [14:07]

Big pharma is broadly incentivized by the patent cliff, but biotechs need to understand the varying objectives of different companies.
Short the launch strategy [23:42]

Investors are taking a different view of start-ups’ capabilities as more small and mid-sized biotechs commercialize their own innovations.