NEW YORK, NY / ACCESSWIRE / January 27, 2017 / The Biotech Industry witnessed a drop in mergers and acquisitions (M&A) activity amidst a slump in 2016. The Nasdaq Biotech Index declined roughly 22 percent in 2016. M&A activity within the Biotech Industry totaled 326 deals worth approximately $91 billion in 2016, compared to $118 billion the year prior, according to Bloomberg. Also the number of M&A deals in the sector in 2016 was the lowest total in six years. Research & development productivity of 12 of the biggest biopharma companies, which was measured by annual projected R&D returns, hit a 7 year low in 2016, according to a recent study completed by Deloitte. With many large firms having more cash available, giving them plenty of firepower for larger number of in M & A activities in 2017.

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"With a large gap remaining between large BioPharma's actual and desired revenues, and historically high amounts of cash on hand, look for an uptick of larger acquisition targets," says David Risinger, an analyst for Morgan Stanley who covers big pharma. "This is particularly true of the U.S. BioPharma industry, where the amount of cash on hand is greater and intentions more focused."

Exelixis, Inc. (NASDAQ: EXEL)

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Exelixis' shares gained 0.38 percent to close at $18.50 a share Thursday. The stock traded between $18.25 and $18.84 on volume of 3.48 million shares traded. Currently, Exelixis is focused on advancing cabozantinib, an inhibitor of multiple tyrosine kinases including MET, AXL and VEGF receptors, which has shown clinical anti-tumor activity in more than 20 forms of cancer and is the subject of a broad clinical development program.

On January 9th, the company announced that Genentech, Inc. has withdrawn its counterclaim against Exelixis in the ongoing JAMS arbitration concerning alleged breaches of the parties' collaboration agreement.

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX)

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Vertex Pharmaceuticals' shares gained 0.16 percent to close at $85.33 a share Thursday. The stock traded between $84.05 and $87.91 on volume of 2.53 million shares traded. The company reported total CF revenues were $454 million for the fourth quarter of 2016, an increase of 13 percent when compared to $401 million in the fourth quarter of 2015. GAAP net income was $32.9 million, or $0.13 per diluted share, compared to GAAP net loss of $73.7 million, or a loss of $0.30 per diluted share, for the fourth quarter of 2015. As of December 31, 2016, Vertex had $1.43 billion in cash, cash equivalents and marketable securities.

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