Biotechnology deal activity slid further in the third quarter, down 22% to 42 transactions, compared with the second quarter’s 54 transactions. The total represents 19% of the 217 deals announced in the previous 12 months.

Deal making may have slowed in the face of growing complaints from President Trump about the high cost of drugs, and Congressional hearings were set to begin in mid-October. While M&A in the Pharmaceutical sector has been hit harder, most companies are dependent on biotechnology companies to innovate novel therapies in various areas.

In the third quarter, nine of the 42 transactions involved the purchase of an entire company, and 33 involved the rights or license to a marketed product or a lead drug candidate.

3rd Quarter Biotech Deals

The largest deal of the quarter landed in this sector, as Gilead Sciences paid $11.9 billion to acquire publicly traded Kite Pharma. The company has developed a pipeline of engineered autologous cell therapy-based product candidates for the treatment of solid and hematological malignancies. Its most advanced therapy candidate is currently under priority review by the FDA.