After implementing a workforce reduction of 1,900 U.S. employees in January, Abbott Laboratories Inc. in recent months had re-organized its diversified company into three units – proprietary pharmaceuticals, durable growth products and innovation-driven devices. Its latest announcement cements that change: Abbott will divide into a diversified medical products company, to retain the Abbott name, and a research-based pharmaceuticals company, which will take a new, to-be-determined name.

Though clinical proof-of-concept has long been the goal of fledgling biotechs hoping to land a deep-pocketed partner or acquirer, data suggest reaching this inflection point may no longer provide an optimal risk-reward balance. Biotechs would be wise to partner earlier.

Mid-sized M&A, collaborations, creative financing, and biotech consolidation will feature in 2023. IPOs and follow-ons play bit-parts.