Pharma and Biotech M&As in 2025 Roundup

The pharmaceutical and biotechnology industry has kicked off 2025 with some notable mergers and acquisitions (M&A), signaling a renewed focus on innovation, pipeline expansion and strategic growth.

After a relatively subdued 2024, where companies favored smaller, strategic deals over large-scale acquisitions, major players are now aggressively pursuing deals to strengthen their positions in therapeutic areas such as oncology, neuroscience and cell therapy.

With impending patent expirations, increasing competition and advancements in AI-driven drug discovery, companies are leveraging acquisitions to stay ahead.

Given this, Ernst & Young (EY) is predicting that “major deals could come back on the agenda” in 2025.

From Johnson & Johnson’s (J&J) multibillion-dollar bet on mental health drugs to GSK’s push into precision oncology, it seems like the first months of 2025 have already set the stage for a transformative year in pharma and biotech deal-making.

Key Pharma and Biotech M&A Transactions in 2025

J&J’s Acquisition of Intra-Cellular Therapies

In January, J&J announced its acquisition of Intra-Cellular Therapies Inc. for approximately $14.6 billion. The move aims to enhance J&J’s neuroscience portfolio, particularly with Intra-Cellular’s lead product, Caplyta (lumateperone), which was approved late last year as the first and only approved treatment for schizophrenia and depressive episodes associated with bipolar disorder. Also this year, Intra-Cellular reached a patent settlement with generics maker Sandoz that extends Caplyta’s market exclusivity from 2036 to 2040, strengthening its market position.

The acquisition marks the largest in the biopharma industry since February 2024, when Novo Nordisk spent $16.5 billion to acquire the contract development and manufacturing organization (CDMO) Catalent. It’s also one of J&J’s most significant acquisitions in recent years. Last year, J&J scooped up Shockwave Medical for $13.1 billion and heart pump manufacturer Abiomed for $16.6 billion in 2022.

GSK Purchases Cancer Biotech

Also to kick start the year, GSK agreed to acquire US-based cancer drug developer IDRx for up to $1.15 billion. The acquisition — which involves GSK making an upfront payment of $1 billion — is set to strengthen GSK’s oncology division, focusing on precision medicines for gastrointestinal cancers.

The acquisition brings IDRX-42, IDRx’s Phase III KIT-selective tyrosine kinase inhibitor (TKI) for the treatment of gastrointestinal stromal tumors (GIST). An estimated 80% of GIST cases are driven by KIT gene mutations. GSK is looking to top the current standard of care for GIST — Novartis’ Gleevec (imatinib) — with IDRX-42. As a more targeted TKI, GSK believes it has the edge over Gleevec, which is associated with high toxicity. GSK will also take on milestone payments and potential royalties for the candidate, which IDRx originally licensed from Merck KGaA in 2022.

Merck KGaA’s Negotiations with SpringWorks Therapeutics

Germany’s Merck KGaA confirmed in early February that it is in “advanced” discussions to acquire US biotech firm SpringWorks Therapeutics, which specializes in treatments for cancer and rare diseases. While a definitive agreement has yet to be reached, the potential deal could significantly enhance Merck’s oncology pipeline.

The announcement led to SpringWorks’ share price jumping 34%, raising its market cap from $3 billion to just over $4 billion. A few days later, the company got some more good news with the FDA approval of its MEK inhibitor for neurofibromatosis type 1 (NF1) Gomekli (mirdametinib), making it the first approved treatment for the indication and Springworks’ second approved product after desmoid tumor treatment Ogsiveo (nirogacestat).

Roche’s Acquisition of Poseida Therapeutics

In December 2024, Roche agreed to acquire San Diego-based Poseida Therapeutics for up to $1.5 billion. The acquisition aims to expand Roche’s cell therapy capabilities, particularly in developing CAR-T cell therapies for hematological malignancies. In early January, Roche announced its intention to complete the acquisition, disclosing that it had accepted payment for almost 65 million shares in Poseida, amounting to 66% of the company’s stock.

Novo Holdings’ Purchase of Catalent

Just on the heels of the new year, Novo Holdings A/S completed its acquisition of leading CDMO Catalent for $16.5 billion. By integrating Catalent’s manufacturing facilities, the strategic move is intended to boost the production of Novo Nordisk’s (which is under Novo Holdings) popular diabetes and weight-loss drugs, Ozempic and Wegovy. As part of the deal, Novo Holdings acquired three of Catalent’s fill-finish manufacturing sites located in Anagni (Italy), Bloomington (USA) and Brussels (Belgium).

Industry analysts project that the momentum in pharma and biotech M&A activity will continue throughout 2025. The combination of financial capacity, strategic necessity due to patent expirations and a changing regulatory climate is looking to create an environment conducive to significant deals. Companies are expected to pursue both bolt-on acquisitions and larger transformative deals to maintain competitive advantage and drive growth in an evolving market landscape.