In 2008, there will be more joint venture deals done, but M&A has peaked – that’s the word from KPMG in the UK (sourced by Thomson Financial). Their report described the situation around the world and included all industries. The Asia-Pacific sector, where investment remains on the upswing, is not following the general trend. The increasing use of JVs worldwide is interesting for followers of China biotech since a JV is so often the structure of choice for biopharmas investing in China. KPMG's reasoning derives partly from an analysis of past data, but it also follows the dictates of logic. In the financial world, lending standards are tightening as lenders demand greater premiums for risk. That cuts into M&A and private equity deals. Still, businesses must do something to create growth, and JVs provide a low-risk, low-investment vehicle to accomplish this. More details...