RE:PwC sees continuation of US$ 5 to 15 Billion Bio M&A DealsBig Pharma M&A activities were "cooled" in 2024, particularly because of the FTC's restrictive actions on companies that were looking towards vertically focused M&A activities that would otherwise have bolstered their oncology pipelines through the integration of new products that were aligned with their pipeline's objectives. The largest deal announced by far was Novo Holdings’ proposed $16.5 billion buyout of contract development and manufacturing organization (CDMO) Catalent. Outside of that, the leading pharmaceutical companies all found something in a buffet of sub-$5 billion deals primarily in immunology ex. oncology. Part of the reason for the sub-US$5 Billion deals is that smaller biotechs are increasingly opting to take their drug to market on their own. Anothr reason is that there are few late-stage options for Big Pharma to purchase.
So in 2024 Big Pharma moved further upstream in the clinical development continuum to acquire earlier stage companies, with lower value assets that target lower calue targets, like those in immunology targeting chronic respiratory indications.
The acquisition of early-stage stage companies not only resulted in lower value deal-making in 2024 but also precluded Big Pharma having to face the wrath of the FTC.
With the US election now n the rear-view mirror, Big Pharma appears ready to ramp-up its M&A deal-making activity in 2025. The preface to this increase in M&A activity happens to because Big Pharma doesn't foresee FTC interference on the closing of big valution deals involving vertically integrated product pipelines AND Big Pharma is facing a looming patent cliff on some of its largest value "blockbuster products".
Oncology still remains the biggest high-value target for Big Pharma's M&A and late-stage clinical development cancer companies with complementary drug products to Big Pharma's oncology pipelines, like ONCY's pelareorep platform, are viewed as those companies that will be acquired at significant 'buyout' premiums, as compared to those that don't posses those high-value targets or product pipeline synergies.