Biopharma M&A Activity Surges in 2025, Driven by Large Deals and Therapeutic Focus Shifts

Deal Volume and Value Exceed Historical Averages

The biopharmaceutical industry has witnessed a significant uptick in merger and acquisition (M&A) activity in 2025, with both the number and value of deals surpassing recent years and long-term averages. According to a recent analysis by Leerink Partners, the industry has announced an average of 21 deals this year, compared to the historical annual mean of 19 over the past 15 years.

Deal value has been particularly robust, with $65 billion in transactions recorded by early October—nearly doubling 2024's annual total of $37 billion. This surge in deal value reflects a shift towards larger transactions following a period described by analysts as "conservatism and recovery."

Cardiovascular and Metabolic Diseases Drive Deal-Making

The cardiovascular and metabolic therapeutic areas have emerged as hotspots for M&A activity in 2025. Notable transactions in this space include Pfizer's $4.9 billion acquisition of next-generation obesity biotech Metsera and Novo Nordisk's deal to purchase liver-focused Akero Therapeutics for up to $5.2 billion.

These deals underscore a growing industry focus on addressing metabolic disorders, particularly obesity and related conditions, as pharmaceutical companies seek to expand their portfolios in high-growth therapeutic areas.

Shifting Landscapes: Oncology Declines, Cell Therapy Evolves

While cardiovascular and metabolic deals have surged, oncology M&A activity has experienced a notable decline, especially in targeted oncology and immuno-oncology (IO) non-cell indications. This shift suggests a potential rebalancing of industry priorities and investment strategies.

Interestingly, cell therapy deals have maintained momentum, albeit with a pivot towards autoimmune diseases rather than cancer. The industry has shown particular interest in in-vivo CAR-T technologies, signaling a potential new frontier in cell therapy applications beyond oncology.

Recent High-Profile Acquisitions

The pace of deal-making has accelerated since the Leerink Partners report, with several significant transactions announced. These include Novartis's $12 billion acquisition of muscle dystrophy biotech Avidity and Bristol Myers Squibb's $1.5 billion purchase of in vivo cell therapy-focused Orbital Therapeutics.

Johnson & Johnson's $14.6 billion buyout of CNS specialist Intra-Cellular Therapies earlier this year also exemplifies the trend towards larger, more impactful deals in 2025.

These recent high-value transactions further underscore the industry's renewed appetite for strategic acquisitions aimed at bolstering pipelines and commercial portfolios across a diverse range of therapeutic areas.