Big Pharma and Biotech Buyers Drive Q4 M&A Activity

In the fourth quarter of 2025, the pharmaceutical industry witnessed a flurry of merger and acquisition (M&A) activity, with both big pharma players and smaller biotech companies making significant moves. The deals ranged from multi-billion dollar acquisitions to smaller, strategic purchases, reflecting the diverse landscape of the industry.

Novartis Leads with Largest Deal, Smaller Biotechs Show Vigor

Novartis secured the quarter's biggest deal with its $11.3 billion takeover of Avidity Biosciences, a neuromuscular specialist. This acquisition underscores the continued interest of major pharmaceutical companies in bolstering their pipelines with innovative therapies.

However, the quarter was also marked by a series of smaller, yet noteworthy, biotech-on-biotech transactions. These deals, typically in the eight to nine-figure range, demonstrated the industry's dynamic nature and the strategic moves being made by smaller players.

High-Value Transactions Dominate the Quarter

Beyond Novartis, several other billion-dollar deals shaped the M&A landscape:

• Merck acquired Cidara Therapeutics for $9.2 billion
• Novo Nordisk purchased MASH-focused Akero Therapeutics for $4.9 billion
• Sanofi bought vaccine maker Dynavax for $2.2 billion, gaining the approved hepatitis B vaccine Heplisav-B
• BioMarin offered $4.8 billion for Amicus Therapeutics, adding two approved rare disease therapies to its portfolio

These transactions highlight the ongoing trend of large pharmaceutical companies seeking to expand their product lines and research capabilities through strategic acquisitions.

Smaller Players Make Strategic Moves

The quarter also saw significant activity among smaller biotech companies. Alkermes, with a market cap of just $4.6 billion, acquired sleep biotech Avadel for $2.1 billion after a brief bidding war with Lundbeck. This competitive scenario echoes the high-stakes nature of the industry's M&A landscape.

In early December, Mirum Pharmaceuticals acquired rare disease biotech Bluejay Therapeutics for $805 million, centering on brelovitug, a Phase III antibody for chronic hepatitis delta virus (HDV). This deal demonstrates the continued interest in rare disease treatments and late-stage pipeline assets.

The quarter's activities also included some potentially ominous developments for struggling biotechs. XOMA Royalty, known for acquiring and restructuring struggling companies, offered to buy Generation Bio for $55 million. This follows a challenging year for Generation Bio, which saw significant staff reductions in April.

As the pharmaceutical industry continues to evolve, these M&A activities reflect the ongoing efforts of companies to strengthen their positions, expand their pipelines, and adapt to changing market dynamics. The diverse range of deals in Q4 2025 suggests a vibrant and competitive landscape that is likely to shape the industry's future in the coming years.