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Milestone Monday: Paying Up For The Sure Thing

Across big pharma's late-stage buyouts since 2021, consensus values put the acquired asset below the purchase price in nearly two-thirds of cases, and only 12 of 33 cleared 1.0x. The ones that paid best were rare, specialty and bought cheap, and the certainty was never the part sold at a discount.

Secondhand books and records in cardboard boxes below a rack of used clothing at a street flea market.
Everything here has a sticker price. Whether it matches the value is the buyer's problem. Photo by Jon Tyson / Unsplash.