M&A surge in pharma/biotech fuels innovation & expansion

USA – Mergers and acquisitions (M&A) in the pharma and biotech industries have picked up pace in 2025 after a slower year in 2024, reflecting a renewed focus on portfolio expansion and cutting-edge innovation, according to Zacks Investment Research.

Leading firms are leveraging acquisitions, licensing agreements, and strategic collaborations to strengthen their pipelines, particularly in AI-driven drug discovery and emerging therapeutic areas.

Recent acquisitions & partnerships

Sanofi has announced its acquisition of Blueprint Medicines for up to US$ 9.5 billion, reinforcing its presence in rare immunological diseases.

This deal brings Blueprint’s marketed drug, Ayvakit (avapritinib), into Sanofi’s portfolio, alongside an early-stage immunology pipeline.

“We are committed to expanding our expertise in immunological treatments through smart acquisitions,” a Sanofi spokesperson noted.

Meanwhile, Bristol Myers Squibb has entered into a strategic partnership with BioNTech to develop and commercialize BNT327, a bispecific antibody targeting PD-L1 and VEGF-A for the treatment of solid tumors.

Under the terms of the agreement, BMY will pay BioNTech US$ 1.5 billion upfront, with an additional US$ 2 billion in milestone payments through 2028.

The cancer treatment sector remains a focal point for acquisitions, with Pfizer inking a licensing agreement with 3SBio to develop SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, outside China.

Beyond oncology, the obesity drug market is drawing investment. Regeneron has entered into an in-licensing agreement with Hansoh Pharmaceuticals for HS-20094, a GLP-1/GIP receptor agonist that expands its clinical-stage obesity pipeline.

“This agreement strengthens our commitment to addressing obesity with next-generation therapies,” a Regeneron executive stated.

Pharma’s strategic expansion

M&A remains a key strategy for major players looking to diversify revenue amid changing market dynamics.

Johnson & Johnson’s recent US$ 14.6 billion acquisition of Intra-Cellular Therapies adds Caplyta, an antidepressant, to its neuroscience portfolio.

Novartis is also broadening its scope, acquiring Regulus Therapeutics to enhance its renal disease offerings, particularly farabursen, a first-in-class treatment targeting miR-17 for polycystic kidney disease.

Germany-based Merck KGaA has followed suit with a US$ 3.9 billion acquisition of SpringWorks Therapeutics, securing therapies for desmoid tumors and neurofibromatosis type 1.

Future growth & AI in drug development

As pharma giants hold substantial cash reserves, M&A activity is expected to accelerate further in 2025.

Smaller biotech firms often lack resources for full-scale drug development, making strategic acquisitions essential for bringing promising treatments to market.

Additionally, AI-driven drug discovery is influencing investment decisions, with companies increasingly leveraging technology to enhance efficiency and drive innovation.

With continued consolidation and technological advancements, 2025 is shaping up to be a transformative year for the pharma and biotech industries.