RE:Big Pharma making multi-billion $$ biotech acquisitions Factors driving the uptick in Big Pharma M&A activities include an upcoming patent cliff from 2026 to 2029, pricing pressure and 13 years of FDA exclusivity for novel "biologicals" derived from the U.S. Inflation Reduction Act, according to Moody’s.
A late 2022 Deloitte survey, found further reason for optimism in M&A deals, owing to their potential to drive “new growth opportunities, process improvements, supply chain shortening, and internal restructuring.”
Over the past year, the pharma sector has seen a series of major deals. Some of the largest deals in recent history include Pfizer’s $43 billion acquisition of Seagen in 2023, Amgen’s $27.8 billion acquisition of Horizon Therapeutics in 2022. These deals exemplify the trend of major pharmaceutical companies seeking to expand their portfolios and establish a foothold in high-growth therapeutic areas.
With factors such as patent cliffs, pricing pressures and evolving regulations continuing to influence the industry’s future, it is increasingly evident that Big Pharma M&A will continue to play a core role in the transformation of the pharmaceutical and biotech sectors.