GW Pharma Ltd.

Those who have been longing for the return of merger Mondays may not have to wait that much longer. That’s according to Jefferies analysts, who see the current drawdown in biotech stocks — the XBI is down 25% from a peak in February — setting the stage for some serious M&A, even if emerging antitrust concerns could form new hurdles. With Jazz’s pursuit of GW Pharma and Viela’s sale to Horizon marking the only two deals over $3 billion so far this year, the way they see it, we’re now four to five months into a “correction,” which could amount to a period for valuations to normalize. Hit the six-month mark, and the buyers should be ready to swoop in with the cash they’ve hoarded — as AbbVie, Merck, Gilead and Vertex indicated they’re eager to do.