Curated News
By: NewsRamp Editorial Staff
June 11, 2024
Surging Biotech M&A Reaffirms Massive Opportunity in Rare Disease Drug Development
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- Investing in orphan drug development offers substantial growth potential with sales reaching $185 billion this year and projected to hit $270 billion by 2028.
- Orphan drugs, encouraged by U.S. FDA's orphan drug designation, have consistently outpaced growth and become a major part of pharma’s mainstream business.
- Investment into the unmet need of rare diseases is warranted, as it makes the world a better place by providing treatments for diseases affecting fewer than 200,000 people in the U.S.
- The surge in M&A activity among orphan drug developers, including the acquisition of GW Pharmaceuticals by Jazz Pharmaceuticals, demonstrates a significant opportunity in the orphan drug development sector.
Impact - Why it Matters
The news reflects the growing success and potential of orphan drugs in the pharmaceutical industry, with sales projected to reach $270 billion by 2028. The surge in M&A activity among orphan drug developers signifies the substantial investor interest and the significant opportunity in this sector. This development also highlights the positive impact on patients with rare diseases, as the continued investment into the unmet need of rare diseases is warranted.
Summary
Last year, sales from orphan drugs soared to $168 billion, accounting for about 17% of the industry’s total and just shy of the entire oncology therapeutic category at $194 billion. This year, these drugs are on track to generate an impressive $185 billion and are projected to hit around $270 billion by 2028. That explains why there has been a surge in M&A activity among orphan drug developers over the past couple of years. For instance, when novel cannabidiol-based drug Epidiolex successfully treated rare forms of child onset epilepsy, GW Pharmaceuticals more than doubled its market value. The 120-patient trial showed patients taking Epidiolex achieved a median reduction in monthly convulsive seizures of 39% compared with a reduction on placebo of 13%. GW Pharmaceuticals went on to be acquired by Jazz Pharmaceuticals for $7.2 billion in 2021, representing a premium of approximately 50% over GW's closing stock price at the time. Clearly, there is a significant opportunity in orphan drug development, which is why these four stocks have been generating substantial investor interest.
Source Statement
This curated news summary relied on this press release disributed by News Direct. Read the source press release here, Surging Biotech M&A Reaffirms Massive Opportunity in Rare Disease Drug Development
