J&J still holds the top deal of the year by value with its $14.6 billion buy of Intra-Cellular in January, but the next four biggest acquisitions came in the past four months.
After a third-quarter burst of activity, the top five biopharma acquisitions of the year have been refreshed—save for the number one spot—with analysts expecting a return to high-value dealmaking.
All told, about $55.7 billion was offered up by Big Pharma players to buy biotechs in the third quarter. None of the deals eclipsed Johnson & Johnson’s $14.3 billion play for Intra-Cellular, which kicked off the year on January 13. That deal remains the highest value M&A of 2025, while Merck’s $10 billion takeout of Verona has taken the number two slot and is the biggest of the third quarter.
Genmab got in under the wire on Monday with an $8 billion bid for bispecific antibody specialist Merus. The deal sent Merus’ shares flying 36% to $93.83, signaling investors’ excitement about the transaction. Bloomberg News had reported a behind the scenes battle to seal the deal, with Genmab ultimately winning out.
Merus is not a done deal, as the presence of other suitors could spark a bidding war, BMO Capital Markets said Monday morning. But it does speak to a growing appetite for higher-value deals.
“The Genmab-Merus acquisition points to a shift in BioPharma sentiment,” BMO analysts wrote. “Following lulls in M&A activity over the last few years, growing high-value deals including today’s news of Genmab’s acquisition of Merus suggest increased appetite for larger transactions.”
This analysis is reflected in the data, which showed the number of deals rising. There were 21 in the third quarter, compared to 16 in the second and 15 in the first.
Other big transactions for the quarter include Pfizer’s $4.9 billion acquisition of obesity-focused Metsera. The deal totals more than $8 billion when factoring in the contingent value right that will be paid out if the biotech’s drugs clear a set of regulatory hurdles, from Phase III entry to FDA approval, according to S&P Capital IQ data. Roche also struck with a $3.5 billion buyout of 89bio that snagged a late-stage asset for metabolic dysfunction-associated steatohepatitis (MASH).
“With interest rates recently lowered and numerous pharma companies encountering near-term LOE’s (read MRK, PFE, BMY, etc.), we may see more sizable transactions from large-cap players attempting to replace revenue losses as capital becomes more accessible,” BMO added.
Zombie biotech hunter Concentra Biosciences was once again the most acquisitive company of the quarter, this time joined by similar operator Xoma Royalty. Each acquired three struggling companies.
