First signs of increased M&A activity due to attractive valuations

The second quarter was distinguished by a difficult macroeconomic environment and, particularly, by stubbornly high inflation. The broad market corrections that began earlier in the year continued. Biotech stocks, as measured by the Nasdaq Biotech Index, reported a loss of 9.8% in USD. There were some initial signs of a pickup in M&A activity in June, which helped the sector claw back some lost ground late in the quarter. This can be viewed as a sign that the sell-off in stock markets has gone too far and that the biotechnology sector is currently undervalued.