RE: Premiums paid for small cap biotechs???21 May 2024 21:41
Oh it’s coming!!!
The largest multiple to current share price for a major buying a small biotech company in the UK in recent years was **42x**. This was paid by **AstraZeneca** for **Alexion Pharmaceuticals** in 2021.
Other notable examples of high multiples paid for small biotech companies in the UK include:
* **GSK** acquired **Sierra Oncology** for **36x** its current share price in 2022.
* **Johnson & Johnson** acquired **Actelion Pharmaceuticals** for **30x** its current share price in 2017.
* **Roche** acquired **Spark Therapeutics** for **29x** its current share price in 2019.
These high multiples reflect the strong demand for promising biotech companies by large pharmaceutical companies. Biotech companies often have valuable pipelines of new drugs and technologies, which can be attractive to larger companies looking to expand their portfolios.
It is important to note that these are just a few examples, and the multiples paid for small biotech companies can vary depending on a number of factors, such as the size of the company, the stage of its development, and the potential of its pipeline.