The life sciences industry saw a resurgence in deal activity throughout 2024, and the momentum appears set to accelerate in 2025. A wave of healthcare transactions closed early in 2024 after being announced in late 2023, signaling renewed confidence in the sector. Combined with steady interest rates contributing to broader economic stability, this trend points to a promising future for M&A activity in life sciences. As M&A activity in the life sciences sector gains momentum in 2025, companies must take a strategic and forward-thinking approach to capitalize on emerging opportunities. The increasing focus on oncology and immunology, market entry through targeted acquisitions, AI-driven innovation, and breakthroughs in new therapeutic areas underscore the need for a well-defined M&A strategy. Below, we dive into four 2025 M&A deal trends in life sciences, with examples for each.

2025 M&A Deal Trends in Life Sciences 

The following trends highlight key themes shaping M&A activity in the life science industry for 2025:  

• Portfolio Expansion in Oncology and Immunology 
• Strategic Acquisitions to Accelerate Market Entry 
• AI and Emerging Technology Integration 
• New Areas of Innovation 

Trend 1: Portfolio Expansion in Oncology and Immunology 

Biopharma continues to be at the forefront of M&A activity, with a strong emphasis on high–growth oncology and immunology drugs.  Both sectors are poised for substantial growth: the immunology drugs market is projected to grow at a CAGR of 13.6% through 2030, while oncology is expected to expand at a CAGR of 11.3% between 2024 and 2032.  

[January 2024] : Merk Acquires Harpoon Therapeutics  

Merk entered into a definitive agreement to acquire Harpoon Therapeutics for approximately $680 million. Harpoon, recognized for its development of T-cell engagers targeting difficult-to-treat cancers, aligns with Merk’s strategic focus of expanding its oncology pipeline. This acquisition will strengthen Merk’s immuno-oncology portfolio and reinforce its position as a leader in innovative cancer therapies 

[April 2024]: Vertex Pharmaceuticals Acquires Alpine Immune Sciences 

Vertex Pharmaceuticals announced its agreement to acquire Alpine Immune Sciences for approximately $4.9 billion in cash. This acquisition grants Vertex access to Alpine’s promising pipeline, including potential treatments for chronic kidney disease, in addition to their primary focus of treating cystic fibrosis (CF). 

[July 2024]: Biogen Acquires Human Immunology Biosciences 

Biogen Inc. completed the acquisition of Human Immunology Biosciences (HI-Bio), a privately held clinical-stage biotechnology company focused on targeted therapies for patients with severe immune-mediated diseases. The deal, valued at up to $1.8 billion, is expected to enhance Biogen’s late-stage pipeline and expand its immunology portfolio of treating systemic lupus, rheumatoid arthritis, and psoriasis, building on its capabilities in immune-mediated indications.  

Trend 2: Strategic Acquisitions to Accelerate Market Entry 

Pharmaceutical companies are strategically acquiring late-stage or commercial-ready biopharma companies to address gaps in their product pipelines, enabling accelerated market entry with therapies that are closer to generating revenue.   

[January 2024]: Novartis Acquires Calypso Biotech B.V.
Novartis acquired Calypso Biotech, a Switzerland-based company, for $425 million, gaining full rights to CALY-002, a monoclonal antibody targeting the IL-15 pathway. IL-15 is an untapped immune axis that controls barrier function and downstream immune cascades, making it a promising target for chronic autoimmune conditions. Novartis plans to explore CALY-002, further reinforcing its commitment to expanding its portfolio of innovative treatments in the immunology space. 

[July 2024]: Semnur Pharmaceuticals Merges with Denali Capital Acquisition Corp.
Semnur Pharmaceuticals, a subsidiary of Scilex Holding Company, merged with Denali Capital Acquisition Corp. in a $2.5 billion deal designed to address gaps in the pain management market. The merger provides Semnur with the capital to advance its flagship product, SP-102 (SEMDexa), a Phase 3 corticosteroid gel developed for epidural injections to treat sciatica pain. As a non-opioid solution, SP-102 represents a significant advancement in pain management, with peak annual sales expected to reach $3.6 billion within five years of its launch. The deal underscores Semnur’s strategic focus on pipeline expansion and market penetration, addressing a critical need for non-opioid therapies in the pain management sector. 

[July 2024]: Boehringer Ingelheim Acquires Nerio Therapeutics, Inc.
Boehringer Ingelheim acquired Nerio Therapeutics, a U.S.-based company, for $1.3 billion to bolster its immuno-oncology pipeline. This acquisition allows Boehringer to incorporate Nerio’s pre-clinical assets into its portfolio, addressing gaps in current checkpoint inhibitor therapies and offering new options for patients who do not benefit from existing treatments. Boehringer plans to leverage Nerio’s assets as standalone therapies and in combination with its existing oncology treatments. The acquisition aligns with Boehringer’s broader strategic goal to launch 25 new treatments by 2030. To achieve this, the company intends to initiate over ten new Phase II and Phase III clinical trials within the next 12 to 18 months, focusing on therapeutic areas such as mental health, oncology, cardiovascular, renal, and metabolic diseases.  

Trend 3: AI and Emerging Technology Integration 

The integration of AI technologies into drug discovery and development processes is increasingly driving M&A activity, as companies aim to accelerate R&D timeline and improve patient outcomes.  By acquiring AI-driven biopharma startups, companies can significantly reduce expenses by using automation to speed up timelines and position themselves to be the beneficiaries of innovation. 

[June 2024]: Becton, Dickinson and Company Acquires Critical Care Product Group of Edwards Lifesciences Corporation
Becton, Dickinson and Company (BD) acquired the Critical Care division of Edwards Lifesciences for $4.2 billion, reflecting the growing trend of integrating AI into healthcare technologies. Edwards’ Critical Care division has been a leader in advanced patient monitoring technologies enhanced by AI, widely used in operating rooms and intensive care units globally. These solutions, including Swan Ganz pulmonary artery catheters, minimally invasive sensors, and tissue oximetry monitors, provide real-time cardiovascular insights, improving patient outcomes. In 2023, this division generated over $900 million in revenue, highlighting its significant market presence and demand for innovative technologies. 

[August 2024]: Recursion Pharmaceuticals Acquires Exscientia plc
Recursion Pharmaceuticals acquired Exscientia plc, a UK-based leader in AI-driven drug discovery, for $688 million, creating a global powerhouse in technology-driven drug design. Exscientia was the first to advance AI-designed small molecules into clinical trials, leveraging automation and precision chemistry tools. Its automated small molecule synthesis platform will enhance Recursion’s capabilities in hit discovery, translational research, and pipeline development. The merger also brings together transformational partnerships with leading pharmaceutical companies. Recursion’s collaborations with Roche-Genentech (focused on neuroscience and gastrointestinal oncology) and Bayer (targeting challenging oncology indications) will complement Exscientia’s partnerships with Sanofi and Merck KGaA in immunology and oncology. 

Trend 4: New Areas of Innovation 

Pharmaceutical companies are increasingly focusing on acquiring innovative technologies in emerging therapeutics such as obesity treatments, radiopharmaceuticals, and antibody-drug conjugates (ADCs). These fields represent untapped potential in high growth areas, allowing companies to gain market share to fuel long-term growth.   

[May 2024]: Merck & Co. Acquires Eyebiotech (EyeBio) Limited
Merck & Co. acquired EyeBio, a UK-based biotechnology company, for up to $3 billion to diversify its portfolio with treatments for eye diseases. This acquisition highlights Merck’s strategic focus on expanding into new areas of innovation, particularly in ophthalmology. EyeBio’s expertise in developing therapies for retinal diseases will complement Merck’s existing portfolio and pipeline, marking a significant move into the eye care sector, which has seen increasing interest due to the aging population and the growing demand for novel therapies. 

[May 2024]: Novartis Acquires Mariana Oncology
Novartis expanded its precision cancer treatment portfolio by acquiring Mariana Oncology, a U.S.-based radiopharmaceutical company, for $1.75 billion. The acquisition allows Novartis to enhance its capabilities in the rapidly growing field of radiopharmaceuticals, which use radioactive isotopes to treat cancer. This move strengthens Novartis’ position in oncology and adds cutting-edge treatments to its pipeline, further solidifying its leadership in precision medicine. Mariana’s expertise in radiopharmaceuticals complements Novartis’ existing oncology portfolio and will drive innovation in the treatment of various cancers. 

[November 2024] Ratio Therapeutics and Novartis Partner to Advance Next Generation Radiopharmaceuticals 

Novartis entered into a worldwide licensing and collaboration agreement with Ratio Therapeutics valued at $745 Million to advance a next generation somatostatin receptor 2 (SSTR2)- targeting radiotherapeutic candite for cancer treatment. The calibration focuses on preclinical research to select an SSTR2- targeting development candidate, after Novartis will lead development, manufacturing and commercialization efforts. 

Looking Ahead 

Life sciences companies are sharpening their focus on high-impact therapeutic areas, emerging technologies, and global expansion strategies. With cash reserves at historic highs and favorable regulatory conditions, this sector is well positioned to sustain M&A momentum through 2025 and beyond. Speed and precision in identifying strategic targets and executing deals will be critical in strengthening pipelines, entering new market and staying ahead of innovation curves 

From pinpointing high-value acquisition targets and executing in-depth due diligence to refining post-merger integration, Clarkston’s M&A team enables companies to tap into new possibilities while managing risks effectively. Connect with us today to learn how we can help.