Range Fund Holdings

𝗢𝗻𝗰𝗼𝗹𝗼𝗴𝘆 𝗠&𝗔 𝟮𝟬𝟮𝟯/𝟮𝟰 Base case scenario forecasts 10 Oncology acquisition deals in 2024 after $65.2bn in M&A for oncology assets in 2023. There have been 3 so far (AbbVie/ImmunoGen, JNJ/Ambrx, Novartis/MorphoSys) for a total value of ~$15bn. 𝗠&𝗔 𝘃𝗮𝗹𝘂𝗲 𝗯𝘆 𝗯𝗮𝘀𝗸𝗲𝘁 𝟮𝟬𝟮𝟯/𝟮𝟰 📌Targeted therapy: $8.9bn 📌ADC: $55bn (ADCs have been the dominant modality by a wide margin, though notably bolstered by Pfizer/Seagen, the largest M&A deal since AbbVie’s $63bn acquisition of Allergan in June 2019) 📌Radiopharma: $5.5bn (here we are seeing a clear acceleration in Pharma interest, though RLTs remain a more challenging modality to bring in-house given the unique infrastructure & capabilities required) 📌T-cell engagers: $680mn "𝗛𝗼𝘁" 𝗠&𝗔 𝗯𝗮𝘀𝗸𝗲𝘁𝘀 𝗶𝗻 𝗢𝗻𝗰𝗼𝗹𝗼𝗴𝘆 𝟮𝟬𝟮𝟯/𝟮𝟰 Continuing the momentum from 2023, ADCs and radiopharma are expected to drive deal activity, with T-cell engagers also generating M&A interest. My view is that overall M&A will continue to favor clinical-stage assets with meaningful near-term catalysts given pipeline gaps and LOEs (with varying urgency across Pharma, allowing some to be more flexible on early-stage assets for an existing platform, for example) and with the IRA firmly in focus. Besides the clinical impact & commercial success we are already seeing with novel ADCs and RLTs, the evolving regulatory environment is a key driver behind the buoyant interest in these modalities, which are inherently more IRA-resilient. With the difficulty of making highly targeted therapies in smaller indications (however high the unmet need) commercially viable for Pharma, even more so with the IRA looming, large markets are once again a crucial consideration, which is impacting investment & deal activity well beyond Oncology, most notably in Immunology. Source: Cantor Fitzgerald