Pharma M&A Heats Up: 2025 Sees Record-Breaking Deals and Fierce Bidding Wars

The pharmaceutical industry witnessed a resurgence in mergers and acquisitions (M&A) activity in 2025, with several multibillion-dollar deals shaping the landscape. After a post-pandemic lull, Big Pharma flexed its financial muscle, engaging in high-stakes bidding wars and strategic acquisitions to bolster pipelines and secure future revenue streams.

J&J and Novartis Make Bold Moves in Neuroscience

Johnson & Johnson kicked off the year with a $14.6 billion acquisition of Intra-Cellular Therapies, securing the antipsychotic drug Caplyta and a promising neuroscience pipeline. The deal, which closed in April, strengthened J&J's position in the challenging neuroscience space and was hailed by analysts as a "much-needed win" for the field.

Not to be outdone, Novartis made a significant play in October, acquiring Avidity Biosciences for $12 billion after months of negotiations. The deal gives Novartis access to Avidity's portfolio of RNA therapies, including three antibody-oligonucleotide conjugates (AOCs) in registrational development for various muscular dystrophies. Avidity's CEO Sarah Boyce played hardball during negotiations, successfully pushing Novartis to increase its initial offer from $7.4 billion to the final $12 billion price tag.

Fierce Competition in Obesity and Respiratory Markets

The obesity market saw one of the year's most dramatic bidding wars, with Pfizer and Novo Nordisk battling for control of Metsera. Pfizer's initial $4.9 billion offer in September was quickly overshadowed by Novo's unsolicited $8.5 billion bid. The ensuing legal disputes and public spats culminated in Pfizer matching Novo's increased $10 billion offer in November, securing the deal and marking its re-entry into the lucrative obesity market.

In the respiratory space, Merck made a significant move by acquiring Verona Pharma for $10 billion in July. The deal centered around Ohtuvayre, a newly approved COPD drug with potential peak annual sales of $3-5 billion. Analysts view this acquisition as part of Merck's strategy to offset potential revenue losses when its blockbuster cancer drug Keytruda loses patent protection in 2028.

Women-Led Biotechs Command Premium Valuations

A notable trend in 2025's M&A activity was the prominence of women-led biotechs securing high-value exits. In addition to Sarah Boyce's Avidity Biosciences, Intra-Cellular Therapies (led by Sharon Mates) and Blueprint Medicines (helmed by Kate Haviland) were acquired for $14.6 billion and $9.5 billion, respectively. These deals underscore the growing influence of women executives in the biotech sector and their ability to drive significant value for shareholders.

The pharmaceutical M&A landscape in 2025 was characterized by strategic moves to strengthen pipelines, enter new therapeutic areas, and secure future revenue streams. With four of the year's biggest acquisitions topping $10 billion and fierce competition for promising assets, the industry demonstrated its willingness to invest heavily in innovation and growth. As companies continue to navigate patent cliffs and seek new sources of revenue, 2025's dealmaking activity may set the stage for further consolidation and strategic repositioning in the years to come.