designer491 As many large pharmas continue to deal with upcoming patent cliffs that will impact sales of key drugs, it could spur additional dealmaking for small and mid-size biotechs to make up for the loss of revenue. These biotechs will \"will receive significant attention in 2024\" as a way to fill pipeline gaps in the second half of the decade, according to PwC. \"Competition for truly innovative assets remains intense,\" according to a recent PwC piece entitled \"Global M&A Trends in Health Industries. \"At the same time, companies are continually reviewing their portfolios for divestiture candidates that could unlock value and provide capital to deploy on new acquisitions.\" Citing the growth of GLP-1 weight loss drugs such as Novo Nordisk's (NVO) Wegovy (semagludide) and Eli Lilly's (NYSE:LLY) Zepbound (tirzepatide), PwC Germany Global Health Industries Deals Leader Christian Moldt noted that \"Biotech companies that can innovate in this space, especially those focused on providing an oral method of administration, will be highly sought after.\" Both companies are developing oral weight loss therapies. Lilly's, in phase 3, is known as orforglipron. Novo released phase 3 data on a 50 mg oral version of semaglutide in 2023 and phase 1 data on amycretin, a co-agonist of GLP-1 and amylin, in March of this year. Viking Therapeutics (NASDAQ:VKTX) has been the target of takeover speculation following positive phase 2 data of its oral GLP-1/GIP agonist VK2735 released in late February. It has the same mechanism of action as Zepbound. Moldt added that he does not anticipate seeing any megadeals that would combine large pharmas this year. He also said that large pharmas are motivated to divest non-core or low-growth assets \"to help generate cash to advance new investments that align more closely with their core competencies.\" Biotech, however, is not the only health care industry that could see an upswing in M&A activity. Moldt said that consumer health product demand is rising due to an aging population and higher incomes. \"Companies specialising in consumer health areas will likely remain attractive acquisition targets in 2024 because recently spun-off pure-play over-the-counter drug and consumer health businesses are expected to use transactions to accelerate their own growth and transformation plans,\" he wrote. That means the companies like Kenvue (KVUE) and Haleon (HLN) could be on the lookout for potential acquisitions.