Last year, life sciences M&A transactions fell 41% in value. According to Ernst & Young, this drop was attributable to a preference for smaller and mid-sized deals that involved de-risked assets. The consultancy firm predicted that “major deals could come back on the agenda” in 2025, and this appears to have come true. Building on a $14.6 billion deal at the start of the year, the sector has gone on to outperform dealmaking in 2024. Emerging biotech companies lie at the heart of this increase.
“Last year, biotech companies were responsible for more than 70% of new drugs approved – a significant shift from just a decade ago when most new drugs originated in pharmaceutical R&D departments,” Ailsa Craig, portfolio manager of International Biotechnology Trust, said in a statement. “This means that acquiring biotech companies is increasingly the most effective way for pharmaceutical companies to add innovative treatments to their pipelines and protect their long-term revenues.”
BioXconomy looks back on the ten largest M&A deals of 2025.
1. Johnson & Johnson acquires Intra‑Cellular Therapies for $14.6 billion
This remains the largest biotech acquisition of 2025. The deal gives J&J control of the US Food and Drug Administration (FDA) approved drug Caplyta (lumateperone) for schizophrenia and bipolar depression. Additionally, the pharma also acquired Intra-Cellular’s clinical-stage pipeline targeting anxiety, Alzheimer’s disease-rated psychosis, and more.
2. Novartis expands neuromuscular portfolio with $12 billion purchase of Avidity
The deal gives Novartis gain access to Avidity’s proprietary Antibody Oligonucleotide Conjugate (AOC) platform. This technology is designed to deliver RNA-based treatments into skeletal and cardiac muscle. Alongside this, Avidity’s pipeline of late-stage drug candidates for neuromuscular diseases will also be handed over to Novartis.
3. Merck buys Verona Pharma for $10 billion
In July 2025, Merck closed the largest-ever takeover of a UK biotech. The US-based pharmaceutical company bought Verona Pharma and its lead chronic obstructive pulmonary disease (COPD) asset Ohtuvayre (ensifentrine), a first-in-class dual PDE3/PDE4 inhibitor.
4. Pfizer wins $10 billion bidding war for Metsera
Pfizer’s entry back into the obesity and weight-loss drug race materialised with its takeover of Metsera. Depending on milestone payments, the deal could be worth up to $10 billion. Metsera’s pipeline several GLP-1 receptor agonists, including MET-097i which is currently in Phase II trials. This completion follows an intensive bidding war with Novo Nordisk, who made three attempts to acquire the biotech.
5. Merck secures Cidara Therapeutics for $9.2 billion
Merck struck again in late 2025, buying Cidara Therapeutics in an all-cash deal for approximately $9.2 billion – paying $221.50 per share. The acquisition gives Merck access to Cidara’s late-stage antiviral candidate CD388, aimed at long-acting influenza prevention.
6. Sanofi acquires Blueprint Medicines for $9.1 billion
This deal snaps up a precision-medicine and kinase-inhibitor specialist. Blueprint’s portfolio includes Ayvakit (avapritinib), which is the only approved medicine for both advanced and indolent systemic mastocytosis.
7. Genmab closes Merus deal worth $8 billion
Genmab completed its second-ever acquisition and largest to date, agreeing to buy clinical-stage oncology company Merus for $8 billion. Merus’ late-stage bispecific antibody, petosemtamab which is currently in Phase III trials for head and neck cancer, is at the centre of this deal.
8. Novo Nordisk’s $5.2 billion purchase of Akero Therapeutics
Novo Nordisk acquired clinical-stage biotech Akero Therapeutics for up to $5.2 billion, marking one of the largest deals in the metabolic disease space this year. The Danish pharmaceutical giant hope Aerko’s lead candidate for compensated cirrhosis, efruxifermin, (EFX) will be approved by the FDA by June 2031.
9. Roche completes acquisition of 89bio for $3.5 billion
In a push to expand its metabolic and liver-disease pipeline, Roche acquired 89bio – a firm focused on therapies for fatty-liver disease, including the lead candidate Pegozafermin in late-stage development for steatohepatitis.
Amanda Micklus, biopharma analyst at Citeline, commented on what the M&A landscape could look like in 2026.
“Pricing pressures and upcoming losses of exclusivity will continue to be top of mind in biopharma in 2026. Dealmaking to help rebalance portfolios will be key, focused on sought-after pipeline candidates and marketed products in top market-driving therapy areas such as oncology and metabolic diseases, including obesity and diabetes,” Micklus said.
“Highly pursued novel modalities, such as bispecific antibodies in immuno-oncology, genome editing for personalized treatment, and in vivo CAR-T therapies, are just a few examples of areas that are likely to be in high demand. And a difficult fundraising environment for some biotechs will make them eager sellers.”
10. Merck KGaA bags SpringWorks Therapeutics for $3.4 billion
This acquisition strengthens Germany-based Merck KGaA’s rare-disease and oncology footprint. SpringWorks specializes in targeted therapies for rare tumours; its lead assets include treatments for desmoid tumours and neurofibromatosis.
Source: Bioxconomy
