Biotech buys more of itself than anyone else

The clamoring hordes of biotech investors always want major deals. But if history tells us anything, they’re more likely to get share buybacks.

The analysts at J.P. Morgan looked at five years of data on biotech’s famed four horsemen — Biogen, Amgen, Celgene, and Gilead Sciences — and came up with a sobering figure. Of the roughly $163 billion in cash those companies have spent, just $29 billion went into major acquisitions while $87 billion — 68% of the total — went to buying back shares.

Looking forward, the three big biotechs not merging with Bristol-Myers Squibb have plenty of cash on hand to do sizable deals. But their past investments — and the fact that biotech share prices are in something of a trough right now — suggests they might buy more of themselves than anyone else.