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Biotech Market Eyes Deals With Drugmakers Sitting on Cash

  • SVB Leerink estimates biopharma cash-debt over $1.6 trillion
  • Sector fell to 52-week low in first week of December
Photographer: Adam Glanzman/Bloomberg
Updated on

The world’s top drugmakers are awash with cash and biotech investors are hoping more of that money finds its way to them.

The SPDR S&P Biotech ETF  (XBI) rose 0.8% on Monday after Pfizer Inc.’s $6.7 billion deal for Arena Pharmaceuticals Inc. at a 100% premium to Friday’s close. Also pushing the exchange traded fund higher is Eli Lilly & Co.’s $380 million cancer drug pact with Foghorn Therapeutics Inc.