In this feature, Rupert Winckler, from Healthcare Investment Banking at Piper Jaffray, discusses the reasons why the forecast M&A (merger and acquisition) boom in the biotech industry never happened, the recent run of acquisitions by big pharma of development-stage biotechs, and how much these big pharmas are paying for the biotechs. The latter aspect is illustrated by data on target NPVs (net present values) vs. offer prices for a selection of private and public companies, showing the discounts (or premiums) to these target NPVs actually obtained.