Pharma M&A: What's the global landscape for 2025?
Technological innovation and favourable market conditions drive a new wave of high-stakes mergers and acquisitions in the life sciences (Issue #329, 1,250 words, 5.4 minutes)
Good morning, and welcome to the NPC Healthbiz Weekly e-newsletter from the National Pharmaceutical Congress and Chronicle Companies.
The pharmaceutical industry is experiencing a resurgence in mergers and acquisitions (M&A) in 2025. This trend is especially notable after a relatively subdued period in 2024 when companies favoured smaller, strategic deals over large-scale transactions.
The portal Xtalks reports that the new year began with several high-profile moves, including Johnson & Johnson’s US$14.6 billion acquisition of Intra-Cellular Therapies and GSK’s expansion into precision oncology, signalling a renewed focus on innovation, pipeline expansion, and strategic growth. AlphaSense, the AI intelligence crunchers, notes these deals underscore a broader trend in which major players are pursuing acquisitions to strengthen their positions in key therapeutic areas such as oncology, neuroscience, and cell therapy.
The Boston Consulting Group writes that a primary driver of this consolidation wave is the looming patent cliff. According to Gene Online, over 190 drug patents are set to expire by 2030, threatening to erase up to US$300 billion in revenues by 2028 as blockbuster drugs lose exclusivity and face generic competition. AlphaSense notes that companies such as Merck, Bristol-Myers Squibb, and Pfizer are particularly exposed, with Keytruda, Opdivo, and Eliquis nearing the end of their patent run. The portal also writes that large pharmaceutical companies leverage their deal capacity to offset these anticipated losses and maintain competitive pipelines by acquiring innovative assets and promising biotech firms.
Technological advancements are further accelerating M&A activity. Life Science Academy writes that the integration of artificial intelligence in drug discovery, the rise of digital therapeutics, and the expansion of precision medicine are reshaping the industry’s landscape. Furthermore, Biopharma Boardroom notes that the acquisitions of tech-enabled biotech firms and strategic licensing deals are becoming increasingly common as companies seek to reduce research and development timelines, access new therapeutic modalities, and build comprehensive disease management solutions. The portal also notes that the union of biotech and big tech is blurring traditional boundaries and fueling a new paradigm where digital tools enhance traditional therapies.
Economic and regulatory factors also shape the 2025 M&A environment. Reuters reports that the regulatory climate in 2025 is characterized by unpredictability and increased trade friction, rather than a business-friendly climate. According to AlphaSense, the industry is navigating a complex landscape marked by broad economic uncertainty, recent stock market declines, and aggressive trade policies, including tariffs that threaten to disrupt multinational supply chains and raise costs. Despite these challenges, the industry remains relatively resilient due to its essential nature, with major companies holding an estimated US$1.5 trillion in deal capacity for strategic acquisitions.
Beyond traditional acquisitions, the website European Pharmaceutical Review notes that strategic partnerships and licensing agreements are gaining prominence as companies recognize the value of collaboration in accelerating innovation and maximizing market potential. McKinsey reports that life-science service providers and medtech companies are also actively collaborating, seeking to offer integrated, end-to-end solutions and streamline operations. Additionally, Biopharma Boardroom notes that programmatic M&A, where large companies target multiple smaller companies to achieve specific goals, is especially prevalent in fast-evolving areas such as gene therapy and digital health.
THIS WEEK 05/06/25
The U.S. FDA approved Satsuma Pharmaceuticals’ 505(b)(2) New Drug Application for dihydroergotamine nasal powder (Atzumi) for the acute treatment of migraine with or without aura in adults.
Johnson & Johnson announced the U.S. FDA approved nipocalimab-aahu (Imaavy), a human FcRn-blocking monoclonal antibody, for treating generalized myasthenia gravis.
Walmart Canada opened its first pharmacy clinic in St. Catharines, Ont., with plans to open additional clinics later this year. The new in-store clinic allows licensed pharmacists to offer direct consultations and healthcare services within their expanded scope of practice and to dispense medication.
The U.S. FDA approved Abeona Therapeutics’ prademagene zamikeracel (Zevaskyn) for treating wounds in adult and pediatric patients with recessive dystrophic epidermolysis bullosa.
NOW, LISTEN UP: HERE’S BETTINA HAMELIN OF INNOVATIVE MEDICINES CANADA
In season 14 of the NPC Podcast, Dr. Bettina Hamelin, President of Innovative Medicines Canada, gives insights into the adoption of innovative technologies, the domestic supply chain for pharmaceuticals, and the exclusion of medicines as retaliatory measures for tariffs. Hear her in conversation with podcast hosts Mitch Shannon, Jim Shea, and Mark McElwain.
HEALTHBIZ REWIND
This feature of NPC Healthbiz Weekly looks back at some of the most insightful moments from previous NPC Podcast episodes. You can listen to the podcast here.
Thomas Slowe
CEO
Breadcrumb Analytics
Buffalo, N.Y.
Season 13, episode 05
Listen to this episode here
What bold predictions do you have for the life sciences industry during the coming 12 or 24 months?
I anticipate that within the next year or two, we will likely see the first widely publicized life saved by A.I. I also predict the first widely publicized death due to A.I.
NEXT WEEK
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