This episode of The Motley Fool's Market Checkup is dedicated to the massive increase in biotech IPOs, what's driving the recent spate of major mergers and acquisitions, whether the outperformance of the biotech sector is sustainable, and why potential biotech investors need to think big.
The amount of M&A activity has jumped in the health-care space. Last year, pharma saw a 9% increase in merger and acquisition spending to $27 billion as the two biggest drivers of health-care upheaval, the patent cliff, and the Affordable Care Act make their weight felt.
In this video, health-care analyst David Williamson discusses in detail the impact the patent cliff has on pharma buyouts and Obamacare has on hospital mergers, along with how increased investor interest in health-care stocks could force this M&A trend to come to an end.
The article Obamacare and the Patent Cliff Reshaping an Industry originally appeared on Fool.com.Alison Southwick has no position in any stocks mentioned. David Williamson owns shares of Pfizer. Follow David on Twitter: @MotleyDavid. The Motley Fool recommends and owns shares of WellPoint. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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