The biopharma sector got a much-needed shot in the arm with the Federal Reserve’s highly anticipated rate cut in September, the first since March 2020. Major indices recovered from broader volatility experienced this summer and ended the quarter near multi-year highs. Despite the traditional summer slowdown, the IPO window reopened after Labor Day with four pricings and two additional IPOs expected to price in early October. Overall secondary activity has already surpassed 2023 totals and the private financing market is on track to exceed last year.
Meanwhile, overall dealmaking was anemic during the quarter, with only one public M&A transaction announced valued at over $1 billion (Lilly/Morphic) and 10 partnering deals announced with more than $50 million in upfront proceeds. All eyes now shift towards November’s U.S. presidential election and the Federal Reserve’s ongoing easing cycle as the biopharma sector sets itself up for a broader recovery in 2025.
William Blair's biopharma team shares additional perspectives on the biopharma environment and what to expect heading into 2025.
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