Biotech Industry Prepares for Trump 2.0: Regulatory Changes and M&A Activity Expected

Trump's Re-election Impact:
The biotech industry is bracing itself for significant changes following Donald Trump's re-election, particularly in regulatory policies and M&A activity245.

FDA Leadership Changes:
Trump has nominated Marty Makary to lead the FDA, which is seen as a more conventional and less controversial choice compared to other nominations45.

Controversial Picks:
The nomination of Robert F. Kennedy Jr. as Secretary of Health and Human Services (HHS) has raised concerns due to his anti-vaccine stance, which could impact vaccine approvals and sales25.

M&A Activity:
The Trump administration is expected to promote M&A activity by lessening the Federal Trade Commission's scrutiny on deals, which could boost small and mid-cap biotech valuations25.

Regulatory Environment:
The industry anticipates changes in the regulatory environment, including potential rollbacks of the Inflation Reduction Act and changes in drug price negotiations25.

Industry Anxiety:
A survey of 77 biotech executives reveals considerable anxiety about FDA changes and the impact of Trump's policies on the industry4.

Global Implications:
Trump's 'America First' policies could affect foreign acquisitions and the ability of non-US companies to acquire US-based biopharmaceutical companies2.

Manufacturing Shifts:
There may be an increase in M&A deals involving non-US biopharmaceutical companies seeking to acquire US manufacturing facilities to bypass import tariffs2.

Sources:

2. https://www.pharmaceutical-technology.com/analyst-comment/trump-boom-bust-biopharmaceutical-deal-activity/

4. https://endpts.com/the-endpoints-100-survey-biotech-industry-braces-for-trump-2-0/

5. https://www.biospace.com/business/trump-administration-a-mixed-bag-for-biopharma