In the first five months of 2024, there was a surge in high-value deals, though none have yet matched the scale of Pfizer’s $43 billion acquisition of Seagen, which closed in December 2023. With Novo Holdings’ $16.5 billion purchase of Catalent leading the pack, 2024 reflects a mixed but strong trend toward sizable M&A activity. The Novo deal helps it address surging demand for its GLP-1 receptor agonist products, including Ozempic and Wegovy, according to data from the market-intelligence firm Intellizence as well as independent research.
For context, the late 1990s and early 2000s, which witnessed a wave of mega-mergers that reshaped the pharma landscape. Pfizer’s landmark $90.2 billion acquisition of Warner-Lambert in 1999, centered around Lipitor, remains one of the industry’s largest deals, equivalent to a $146 billion today. The same year saw the $67 billion merger of Astra and Zeneca, forging a global powerhouse focused on key therapeutic areas like oncology and cardiovascular disease. More recently, Bristol-Myers Squibb’s $74 billion acquisition of Celgene in 2019, securing the leading cancer drug Revlimid, was another prominent example of a large M&A deal.
In 2024, dealmaking continues apace but with a notable shift towards more targeted acquisitions and strategic partnerships.
BMS bets big on neuropsychiatry with $14 billion karuna acquisition
Bristol Myers Squibb (BMS) also doubled down on its acquisition strategy in early 2024 with its planned acquisition of Karuna Therapeutics for a total equity value of $14 billion. The deal amounts to $330 per share in cash, representing a 53% premium over Karuna’s stock price prior to the announcement.
Povetacicept behind Vertex’s immunotherapy play
The third-biggest deal of 2024 so far sees Vertex Pharmaceuticals expanding into immunotherapy with its $4.9 billion acquisition of Seattle-based Alpine Immune Sciences. Announced in April, the deal, valued at $65 per share, represents a 38% premium over Alpine’s stock price. The centerpiece of the deal is Alpine’s lead molecule, povetacicept, a dual B cell cytokine antagonist for autoimmune and inflammatory diseases poised to enter Phase 3 trials later this year. This acquisition not only adds a potential blockbuster drug to Vertex’s pipeline but also brings onboard Alpine’s 113-person R&D team.
Strategic partnerships also driving pharma and biotech dealmaking
In terms of deal types, acquisitions were the most prevalent deal type, accounting for nearly half of all transactions. Strategic partnerships were the second most common deal type. Prominent examples include the strategic partnership between Takeda and AC Immune, valued at $2.2 billion, which was centered around ACI-24.060, an active immunotherapy targeting toxic forms of amyloid beta for Alzheimer’s treatment. This includes an upfront payment of $100 million to AC Immune and potential milestone payments up to $2.1 billion.
Another major partnership is Roche’s $2.1 billion collaboration with Moma Therapeutics to advance cancer research, with $66 million paid upfront and additional potential milestone payments.
Gilead announced two major deals related to bispecific and trispecific antibody cancer therapeutics: A $1.7 billion alliance with MacroGenics to develop MGD024, a Phase 1 CD123xCD3 bispecific DART molecule for treating hematologic malignancies like acute myeloid leukemia and myelodysplastic syndromes. The deal included a $60 million upfront payment to MacroGenics.
The second deal was with the clinical-stage oncology firm Merus to discover novel antibody-based trispecific T-cell engagers using Merus’ Triclonics platform. Gilead made a $56 million upfront payment and $25 million equity investment in Merus, with potential milestone payments up to $1.5 billion across multiple programs.
As the chart above shows, other common deal types in the first five months of 2024 were asset purchases and licensing agreements, enabling mainly Big Pharmas to snag valuable drugs and technologies without swallowing entire companies. For example, Sanofi’s $2.2 billion asset purchase of Inhibrx’s INBRX-101 and LEO Pharma’s acquisition of core assets from Timber Pharmaceuticals are examples of some of the most prominenttargeted asset acquisitions of the first five months of 2024.
Select M&A deals (total deal value at least $2B)
| Acquiring Company | Acquired Company | Deal Type | Announced Date | Initial Deal Value | Total Deal Value |
|---|---|---|---|---|---|
| Novo Holdings | Catalent | Acquisition | May 2, 2024 | 16,500,000,000 | 16,500,000,000 |
| Bristol Myers Squibb | Karuna Therapeutics | Acquisition | March 1, 2024 | 14,000,000,000 | 14,000,000,000 |
| Vertex Pharmaceuticals | Alpine Immune Sciences | Acquisition | April 1, 2024 | 4,900,000,000 | 4,900,000,000 |
| Gilead Sciences | Cymabay Therapeutics | Acquisition | February 12, 2024 | 4,300,000,000 | 4,300,000,000 |
| Bristol Myers Squibb | Rayzebio | Acquisition | February 1, 2024 | 4,100,000,000 | 4,100,000,000 |
| Astrazeneca | Gracell Biotechnologies | Acquisition | February 1, 2024 | 2,000,000,000 | 3,200,000,000 |
| Merck & Co. | EyeBio | Acquisition | May 29, 2024 | 1,300,000,000 | 3,000,000,000 |
| Novartis | Morphosys AG | Acquisition | May 2, 2024 | 2,900,000,000 | 2,900,000,000 |
| Deciphera Pharmaceuticals | Ono Pharmaceutical | Strategic partnership | April 1, 2024 | 2,400,000,000 | 2,400,000,000 |
| Fusion Pharmaceuticals | Astrazeneca | Acquisition | March 1, 2024 | 2,000,000,000 | 2,400,000,000 |
| Sanofi | Inhibrx | Asset purchase | January 23, 2024 | 2,200,000,000 | 2,200,000,000 |
| Takeda | Degron Therapeutics | Strategic partnership | May 13, 2024 | 100,000,000 | 2,200,000,000 |
| Takeda | Kumquat Biosciences | Strategic partnership | May 13, 2024 | 100,000,000 | 2,200,000,000 |
| Takeda | Ac Immune | Licensing agreement | May 13, 2024 | 100,000,000 | 2,200,000,000 |
| Roche | Moma Therapeutics | Strategic partnership | January 1, 2024 | 66,000,000 | 2,066,000,000 |
| Astrazeneca | Fusion Pharmaceuticals | Acquisition | March 19, 2024 | 2,000,000,000 | 2,000,000,000 |
| Boehringer Ingelheim | Ribo | Strategic partnership | January 1, 2024 | 2,000,000,000 | 2,000,000,000 |
| J&J | Ambrx Biopharma | Acquisition | January 8, 2024 | 2,000,000,000 | 2,000,000,000 |
Filed Under: Drug Discovery, Drug Discovery and Development, Immunology
