Through early Q4 2025, large pharma and biotech companies have announced roughly $70 billion in upfront M&A deal value, with 17 deals of $1 billion+, marking a sharp rebound from the more subdued large-deal environment of 2024.1
A key driver of this renewed dealmaking is the looming patent cliff, as major drugs approach loss of exclusivity, pushing C-suites to acquire late-stage and commercial assets to backfill revenue and sustain growth.2
Three mega-deals account for about *half of 2025’s pharma M&A value:*
Johnson & Johnson’s $14.6 billion acquisition of Intra-Cellular Therapies, Merck’s $10 billion purchase of Verona Pharma, and Sanofi’s up to $9.5 billion acquisition of Blueprint Medicines.12
Novo Nordisk’s up to $5.2 billion acquisition of Akero Therapeutics (including $4.7 billion upfront) exemplifies large checks being written for metabolic and liver disease assets, especially in MASH/metabolic disease, now one of 2025’s hottest M&A areas.1
Within about five months, big pharmas committed *$8.3 billion upfront for FGF21 analog assets for MASH and related liver diseases:*
Novo Nordisk–Akero, Roche–89bio (~$2.4 billion upfront) and GSK’s $1.2 billion deal for efimosfermin alfa.1
Beyond MASH, deal flow is strong in oncology, neuroscience, cardiovascular and rare diseases, as pharmas seek differentiated, often first‑ or best‑in‑class assets to mitigate patent and competitive pressures.12
Examples of 2025 strategic deals aligned with patent urgency and pipeline bolstering include Genmab’s $8 billion acquisition of Merus (bispecific oncology asset), Eli Lilly’s ~$1 billion+ acquisition of Verve Therapeutics (in vivo gene-editing for cardiovascular disease), and Merck KGaA’s $3.9 billion deal for SpringWorks Therapeutics in rare cancers.2
Mid‑tier deals in the $3–7 billion range, such as the $6.7 billion Mallinckrodt–Endo merger and Merck KGaA–SpringWorks, show that not only mega‑caps but also specialty and mid‑cap players are deploying substantial capital to reposition ahead of future revenue erosion.12
Advisory firms such as EY anticipate that, given patent expirations and the need for pipeline renewal, major pharma deals are back on the agenda in 2025, reversing the 2024 pattern where companies favored smaller, bolt‑on transactions.2
Overall, 2025 deal activity indicates that large, late-stage and commercial assets are commanding premium valuations, as acquirers prioritize immediate or near-term revenue contribution and risk‑balanced innovation in response to the patent cliff and intensifying competition. 12
Sources:
1. https://www.drugdiscoverytrends.com/2025-pharma-ma-surges-to-70-billion/
2. https://xtalks.com/pharma-and-biotech-mas-in-2025-roundup-4105/