New wave of biotech deal-making

Bio-Tech keeps getting the funding they need...well much of it does...recent activity of big pharma has a lot to do with this as well...but the moving targets of which will be a valid technology and those that will fail is still like a day at the crap table at times...mergers with bringing one element in to work with another also tend to cloud the investing future...even though it can mean success the implementation process makes or breaks the deals...you can have the best research and figures and a process, but if the final element, the process that brings the information to market and makes it useable to the general world of healthcare, the final link, is not formatted for quick and simple adaptation, the work is not done.

From here the venture can be absorbed by an unknown, or an known entity and perhaps the final touches completed, or there's also the chance that a purchase could entirely kill the process if not understood, and perhaps there are other motivating factors that come in to play as well, such as absorbing into a an existing system, or squashing the competition. Sometimes it comes down to just keeping up with the Jones....a real crystal ball indeed these days from the investing side of things...who' going to get the product to market the soonest for the fastest return? Add to this the ever evolving FDA and it's growing pains and roll the dice....BD

Ernst & Young took a look into biotechnology's crystal ball and came up with a world of opportunity and some troubling trends that could crimp a record run of new deals. Look for the ongoing convergence of biotech and big pharma, says the big accounting firm in its annual look at the global industry. And along the way, look for one or more near-term mega-mergers.
"One or more mega acquisitions of mature biotechnology companies along the lines witnessed with MedImmune--and nearly seen with Biogen Idec in 2007--is likely," says the report. The hunger to add more experimental therapies into the pipelines of mature developers will keep the most innovative biotech companies in the running for a wide variety of deals, says Ernst & Young. And that will make it a sellers market, with valuations running high.
Those trends will all keep biotech buffered from the worst effects of an economic downturn. The industry has long been a collective money loser, but with deal-making running hot and heavy, private investors are likely to take a long view in getting a return on their cash. Last year, says E&Y, biotechs raised $30 billion, including $5.5 billion in venture funds.

E&Y forecasts new wave of biotech deal-making - FierceBiotech