Consider Smaller Biotech ETFs as Big Pharma Goes Shopping in

Consider Smaller Biotech ETFs as Big Pharma Goes Shopping in 2021


Consider Smaller Biotech ETFs as Big Pharma Goes Shopping in 2021
December 31, 2020
After a lull in mergers and acquisitions activity, Big Pharma could begin to use its cash stores to buy out smaller targets, potentially fueling the momentum in biotechnology-related exchange traded funds that target the small and mid cap segments.
According to Dealogic data, total deal volume for the drug industry reached $253 billion globally in 2020, the Wall Street Journal reports. To put this number in perspective, the markets witnessed a record $432 billion in 2019.
Observers attributed the slowdown in M&A activity to the onset of the coronavirus pandemic, along with election-related uncertainty over future regulatory outlook.

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