Pharma Deals & Trends: M&A, Licensing, and R&D Evolution
Merger and Acquisition Trends: Three-Years Overview
Mergers and acquisitions have trended upward over the past two years, with Q3 2024 recording peak activity. This growth, particularly in the pharmaceutical sector, has been fueled by consolidation, strategic expansion, and a focus on de-risked assets, especially in oncology. Notable transactions include Lundbeck’s acquisition of Longboard to strengthen its neuro-rare franchise and Eli Lilly’s purchase of Morphic, aimed at advancing therapies for inflammatory bowel disease and other areas, highlighting the emphasis on targeted, lower-risk assets in high-priority therapeutic areas.
In Q4 2025, the global pharmaceutical industry saw approximately 79 M&A deals, a slight decline in volume compared with the previous quarter, while total deal value rose to around $80.2 billion. Overall, 2025 outpaced 2024 in both deal count and total value, as major pharma companies pursued acquisitions to enhance pipelines amid patent expiries and competitive pressures. Industry analysts noted multiple multi-billion-dollar deals, some rivaling or exceeding the largest transactions of 2024, reflecting a renewed confidence in M&A as a strategic growth driver.
Some of the most notable pharmaceutical deals in 2025 include: Johnson & Johnson’s $14.6 B acquisition of Intra‑Cellular Therapies, Novartis’ $12 B purchase of Avidity Biosciences, Merck’s ~$10 B deal for Verona Pharma, Sanofi’s ~$9.5 B acquisition of Blueprint Medicines, and India’s Torrent Pharmaceuticals acquiring a controlling stake in JB Chemicals for ~$3 B.
Three years Mergers & Acquisitions data (2023- 2025)
Fig 1: Mergers & Acquisitions data
“Johnson & Johnson’s $14.6 billion acquisition of Intra‑Cellular Therapies stands as one of 2025’s largest deals, strengthening its neuroscience and psychiatric drug portfolio.”
“· Merck’s deal for Verona Pharma (~$10 billion), adding a new respiratory therapy with blockbuster potential.”
Pharmaceutical Licensing Deals: Five-Year Overview
Between 2021 and 2025, the pharmaceutical industry saw significant licensing activity, reflecting the sector’s dynamic R&D collaborations and strategic partnerships. In 2021, approximately 185 licensing deals were completed, followed by around 156 deals in 2022 and 139 deals in 2023, indicating a slight slowdown during that period. However, the market rebounded in 2024 with 187 deals, culminating in a remarkable surge in 2025 with 516 licensing transactions reported globally. This increase highlights the growing emphasis on collaborative innovation, especially in emerging therapies and biopharmaceutical development.
Notable licensing deals from 2025 include:
- A major global licensing deal between Novo Nordisk and Omeros valued at up to $2.1 billion for the rare disease therapy zaltenibart, giving Novo Nordisk exclusive rights to develop and commercialize the asset worldwide.
- Roche’s licensing and collaboration with Zealand Pharma for the obesity drug candidate petrelintide, in a transaction potentially worth up to $5.3 billion — one of the year’s largest licensing agreements aimed at the metabolic and obesity market.
- A $700 million global licensing pact between Ichnos Glenmark Innovation (IGI) and AbbVie to develop and commercialize the rare blood cancer asset ISB‑2001.
“Novo Nordisk secures global rights to Omeros’ rare disease therapy zaltenibart in a landmark $2.1 billion licensing deal.”
“Roche partners with Zealand Pharma on obesity drug petrelintide in a landmark $5.3 billion licensing agreement, one of 2025’s largest in metabolic therapies.”
Five years Licensing data (2021- 2025)
Fig 2: Licensing deals
The Evolution of R&D Deals in Pharma: Five-Year Analysis
The pharmaceutical industry saw a steady increase in R&D agreements through 2022, followed by a decline in 2023 and 2024. This downturn was primarily driven by macroeconomic challenges, stricter regulatory oversight, and a strategic shift toward prioritizing the quality of partnerships over quantity. Despite this decrease, 2024 still featured notable collaborations, such as Caris Life Sciences’ partnership with Merck KGaA, aimed at discovering novel cancer targets and accelerating the development of first-in-class antibody-drug conjugates.
In 2025, global pharmaceutical R&D deals — encompassing licensing, co-development, and other research collaborations — remained a key driver of industry activity. Approximately 685 R&D partnership deals were announced worldwide, spanning collaborative research, clinical-stage development, and licensable assets across biopharma and therapeutic platforms. While the total deal volume was slightly lower than in 2024, the overall deal value surged, reaching around $273.6 billion, reflecting a focus on higher-value, more advanced programs and strategic collaborations among major pharmaceutical and biotech companies.
Notable examples from 2025 include:
- Bristol Myers Squibb & BioNTech, who partnered on a co-development R&D collaboration for the next-generation cancer therapy BNT-327, in a deal valued at up to $11.1 billion, one of the largest oncology R&D collaborations of the year.
- Takeda Pharmaceutical & Nabla Bio, who expanded their multi-year AI-driven drug design partnership to accelerate the discovery of protein-based therapeutics, with potential milestone payments exceeding $1 billion.
Five years Research & Development data (2021- 2025)
Fig 3: Research & Agreement deals
“Bristol Myers Squibb and BioNTech join forces on next-gen cancer therapy BNT-327 in a landmark $11.1 billion R&D collaboration.”
“Takeda Pharmaceutical and Nabla Bio expand their AI-driven drug design partnership, aiming to accelerate protein-based therapeutics with over $1 billion in potential milestones.”