Pharma Giants Increase M&A Activity to Strengthen Pipelines
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Major pharmaceutical companies are intensifying mergers and acquisitions (M&A) activity in 2025 to bolster their drug development pipelines and respond to mounting competitive and regulatory pressures.
According to PharmaM&A Insights, global pharma deal value reached $120 billion in the first half of the year, a 25% increase compared to the same period in 2024. Notable transactions include Pfizer’s $18 billion acquisition of gene therapy specialist NovaGen and Roche’s $12 billion purchase of immuno-oncology startup OncoVax.
Industry analysts attribute the surge in M&A to several factors: expiring patents on blockbuster drugs, increasing R&D costs, and the need to diversify portfolios with innovative therapies such as cell and gene treatments, and personalized medicine.
“Pharma companies are seeking inorganic growth to offset patent cliffs and accelerate innovation cycles,” said Dr. Emily Carter, healthcare analyst at BioMed Analytics. “Acquisitions allow faster market entry and reduce the risks of lengthy clinical trials.”
In addition to large deals, there is growing interest in biotech partnerships and licensing agreements, especially in areas like rare diseases, neurodegeneration, and AI-driven drug discovery platforms.
Regulatory agencies globally are adopting expedited review pathways, which further incentivize companies to strengthen their late-stage assets and pipeline prospects through acquisitions.
However, integration challenges and antitrust scrutiny remain concerns for some transactions. Several deals are under review by competition authorities in the US and EU to assess market impacts.
Investors have responded favorably, with pharmaceutical sector indices gaining 6% year-to-date, driven by optimism around pipeline rejuvenation and potential blockbuster launches.
Looking forward, experts expect M&A activity to remain a key strategic tool as pharma companies navigate a complex environment marked by innovation demands, pricing pressures, and evolving healthcare policies.
