Deal-hungry Big Pharmas, a long-sought biotech prize, an infrequent buyer and one serial biotech rabblerouser highlight a busy quarter in biopharma M&A.
Eli Lilly has served up a triple-scoop of deals, while Gilead, GSK and Novartis went for more modest double-stacked cones in the first quarter. In all, biopharma spent about $46.8 billion on acquisitions in the period across 19 deals as M&A activity in the sector picks up.
The period ended with a flurry of activity, including deals from Biogen, Eli Lilly and Novartis. All told, companies dropped about $20 billion on deals in the final week of the first period alone.
Gilead posted the largest transaction, with nearly $8 billion for cell therapy partner Arcellx in late February. Exactly a month later, Gilead closed the quarter by picking up Ouro Medicines and its T cell engager for $2.18 billion.
Merck won perhaps the biggest prize, buying one of biotech’s most exciting targets in Terns Pharmaceuticals for $6.74 billion. The metabolic-turned-cancer immunology biotech has appeared on many analysts’ lists as a compelling company to buy over the years—including BioSpace’s own.
Eli Lilly, flush with cash from its mammoth obesity portfolio, was the most acquisitive, with three deals including Centessa Pharmaceuticals and its narcolepsy drug on the last day of the quarter for $6.3 billion. The Indianapolis-based pharma also added to its inflammatory portfolio with Ventyx Biosciences for $1.2 billion in January, then entered the CAR T space at last with the $2.4 billion takeover of Orna Therapeutics in February.
Also executing multiple deals were GSK and Novartis.
One company that has not been active of late is Biogen, despite many questions from analysts over the past several years on how and when it might deal. Chris Viehbacher and team finally struck on March 31, dropping $5.6 billion for Apellis Pharmaceuticals for two approved drugs and a team experienced in kidney disease.
Biotech custodian Kevin Tang also returned to the M&A stage at the end of March after taking over the C-suite at Aurinia Pharmaceuticals. He immediately moved to acquire Kezar Life Sciences, a struggling biotech he tried to buy back in 2024. The deal is valued at $50 million.
