Partnering deals and M&A among the large bio/pharma companies and smaller companies not only reflect strategic decisions by the bio/pharma majors to build their product portfolios, but also put these smaller companies on the industry map. Which companies are making the mark in 2025?

By Patricia Van Arnum, Editorial Director, DCAT, pvanarnum@dcat.org

Some key deal-making, both in the form of mergers and acquisitions (M&A) and partnering deals in drug development, thus far in 2025 are highlighted below.

Mergers and acquisitions of note in 2025
Johnson & Johnson’s $14.6-billion acquisition of Intra-Cellular Therapies. Top on the list of M&A thus far in 2025 is Johnson & Johnson’s $14.6-billion acquisition of Intra-Cellular Therapies, a Bedminster, New Jersey-based bio/pharmaceutical company developing therapeutics for central nervous system disorders. A key asset in the deal is Intra-Cellular Therapies’ Caplyta (lumateperone), a once-daily oral therapy approved to treat adults with schizophrenia, as well as depressive episodes associated with bipolar I or II disorder (bipolar depression), as a monotherapy and adjunctive therapy with lithium or valproate. The drug is also being reviewed as an adjunctive treatment for major depressive disorder with a supplemental new drug application submitted to the US Food and Drug Administration for this indication. The acquisition also included ITI-1284, a Phase II compound being studied in generalized anxiety disorder and Alzheimer’s disease-related psychosis and agitation.  

Novartis’ pending $12-billion acquisition of Avidity Biosciences. Earlier this month (October 2025), Novartis agreed to acquire Avidity Biosciences, an RNA-focused bio/pharmaceutical company, for $12 billion to boost Novartis late-stage neuroscience pipeline. Avidity is developing RNA therapeutics, antibody oligonucleotide conjugates (AOCs), for treating rare genetic neuromuscular diseases. The pending acquisition will provide Novartis with three late-stage candidates: (1) delpacibart etedesiran for treating myotonic dystrophy Type 1, a rare progressive neuromuscular disorder; (2) delpacibart braxlosiran for treating facioscapulohumeral muscular dystrophy,a rare hereditary disorder causing loss of muscle function and progressive disability; and (3) delpacibart zotadirsen for treating Duchenne muscular dystrophy, an early-onset disease marked by progressive muscle damage and reduced life expectancy. The deal does not include Avidity’s early-stage programs in precision cardiology, which is being spun off separately by Avidity. The acquisition is expected to close in the first half of 2026, subject to customary closing conditions, regulatory approvals, and shareholder approvals.

Merck & Co.’s $10-billion acquisition of Verona Pharma. Earlier this month (October 2025), Merck & Co. completed its acquisition of Verona Pharma, a bio/pharmaceutical company focused on respiratory diseases, for $10 billion. Through this acquisition, Merck adds Ohtuvayre (ensifentrine), a selective dual inhibitor of phosphodiesterase 3 and 4 (PDE3 and PDE4), to its cardio-pulmonary pipeline and portfolio. The US Food and Drug Administration approved Ohtuvayre in June 2024 for the maintenance treatment of chronic obstructive pulmonary disease in adult patients. Ohtuvayre combines bronchodilator and non-steroidal anti-inflammatory effects. Ohtuvayre is also being evaluated in clinical trials for the treatment of non-cystic fibrosis bronchiectasis.

Sanofi’s up to $9.5-billion acquisition of Blueprint Medicines. In July (July 2025), Sanofi completed its acquisition of Blueprint Medicines, a Cambridge, Massachusetts-based bio/pharmaceutical company specializing in rare diseases, in a $9.5-billion deal ($9.1 billion upfront and up to $400 million in milestone payments). Blueprint’s lead commercial product is Ayvakit/Ayvakyt (avapritinib), a rare immunology disease medicine approved in the US and the European Union. The drug had net revenues of $479 million in 2024 and nearly $150 million in the first quarter of 2025. In its first-quarter 2025 earnings results, Blueprint projected full-year 2025 global net product revenues of Ayvakit/Ayvakyt of $700 million to $720 million with potential global net product revenues of $2 billion by 2030. Blueprint’s key pipeline assets include elenestinib for treating systemic mastocytosis, as well as BLU-808, an oral wild-type KIT inhibitor that has the potential to treat a broad range of diseases in immunology, according to the companies.  

Novo Nordisk’s pending $5.2-billion acquisition of Akero Therapeutics. Earlier this month (October 2025), Novo Nordisk agreed to acquire Akero Therapeutics, a South San Franciso, California-based clinical-stage bio/pharma company focused on metabolic diseases, including metabolic dysfunction-associated steatohepatitis (MASH), in a deal worth up to $5.2 billion ($4.7 billion upfront and $500 million in contingent value right payments). Akero’s lead product candidate is efruxifermin, which is currently being evaluated in three ongoing Phase III clinical studies for respectively treating pre-cirrhotic fibrosis, compensated cirrhosis due to MASH, and MASH or metabolic dysfunction-associated steatotic liver disease (MASLD). The deal is expected to close year-end,  subject to customary closing conditions.

Roche’s $3.5-billion acquisition of 89bio. In another MASH-related deal, earlier this month (October 2025), Roche completed its acquisition of 89bio, a clinical-stage bio/pharmaceutical company focused on the treatment of liver and cardiometabolic diseases, in a deal worth up to $3.5 billion. 89bio’s lead asset, pegozafermin, is a FGF21 analog currently in late-stage development for treating MASH in moderate and severe fibrotic patients (F2 and F3 stages) as well as cirrhotic patients (F4 stage).

Merck KGaA’s $3.4-billion acquisition of SpringWorks Therapeutics. In July (July 2025), Merck KGaA completed its acquisition of SpringWorks Therapeutics, a Stamford, Connecticut-based commercial-stage bio/pharmaceutical company focused on severe rare diseases and cancer, for $3.4 billion. SpringWorks’ commercial products include Ogsiveo (nirogacestat) for treating adult patients with progressing desmoid tumors, a rare subtype of soft-tissue sarcomas. The drug is approved in the US, and in June 2025, the European Medicine Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion recommending the approval of nirogacestat.  The company also received approval earlier this year (February 2025) from the US Food and Drug Administration (FDA) for Gomekli (mirdametinib) for treating adult and pediatric patients 2 years of age and older with neurofibromatosis Type 1, a genetic condition that causes changes in skin pigment and tumors on nerve tissue. The marketing authorization application for mirdametinib has been validated by EMA with a potential approval in 2025. SpringWorks additionally has a pipeline of drugs focused on oncology and rare diseases. 

Novartis’ up to $3.1-billion acquisition of Anthos Therapeutics. Another top deal was Novartis’ $3.1-billion acquisition of Anthos Therapeutics, a Boston-based clinical-stage bio/pharmaceutical company, in a deal worth up to $3.1 billion ($925 million upfront and $2.15 billion in milestone payments). Anthos Therapeutic was launched by the investment firm, Blackstone Life Sciences, and Novartis in 2019. Its lead product is abelacimab, a late-stage medicine in development for the prevention of stroke and systemic embolism in patients with atrial fibrillation. Anthos has advanced abelacimab through clinical development under a license from Novartis. Abelacimab, in Phase III development, is a fully human monoclonal antibody designed to induce effective hemostasis-sparing anticoagulation through Factor XI inhibition. Three Phase III clinical trials are ongoing for patients at risk of arterial and venous clots, one in patients with atrial fibrillation, and two in cancer associated thrombosis.  

Lilly’s up to $2.5-billion acquisition of Scorpion Therapeutics. A key deal in small molecules was Lilly’s acquisition of  Scorpion Therapeutics’ PI3Kα inhibitor program, STX-478, a once-daily oral, mutant-selective PI3Kα inhibitor currently being evaluated in a Phase I/II clinical trial for breast cancer and other advanced solid tumors., in a deal worth up to $2.5 billion in cash, inclusive of an upfront payment and subsequent payments upon achievement of certain regulatory and sales milestones. Additionally, as part of the transaction, Scorpion spun out a new entity to hold its employees and non-PI3Kα pipeline assets. The new, independent company is owned by Scorpion’s current shareholders with Lilly holding a minority equity interest.  

AbbVie’s $2.1-billion acquisition of Capstan Therapeutics. In August (August 2025), AbbVie completed its $2.1-billion acquisition of Capstan Therapeutics, a clinical-stage biotechnology company. Capstan’s lead asset, CPTX2309, is a targeted lipid nanoparticle (tLNP) that delivers an mRNA encoding an anti-CD19 chimeric antigen receptor (CAR) to CD8-expressing cytotoxic T cells in vivo. It is currently in Phase I development for the treatment of B cell-mediated autoimmune diseases. Additionally, AbbVie acquired Capstan’s proprietary tLNP platform technology designed to deliver RNA payloads, such as mRNA, capable of engineering specific cell types in vivo.  

GSK’s up to $2.0-billion acquisition of Boston Pharmaceuticals’ efimosfermin alfa. In July (July 2025), GSK completed its acquisiition of efimosfermin alfa, a Phase III-ready investigational specialty medicine for treating and preventing the progression of steatotic liver disease (SLD), in a $2.0-billion deal (upfront payment of $1.2 billion and up to $800 million in success-based milestone payment). Efimosfermin is a once-monthly fibroblast growth factor 21 (FGF21) analog therapeutic in clinical development for the treatment of MASH, including cirrhosis, and future development in alcohol-related liver disease (ALD), both forms of SLD.

Novartis’ up to $1.7-billion acquisition of Regulus Therapeutics. In June (June 2025), Novartis completed its acquisition of Regulus Therapeutics, a San Diego, California-based clinical-stage bio/pharmaceutical company developing microRNA therapeutics, in a deal worth up to $1.7 billion ($800 million upfront and $900 million in milestone payments). Regulus’ lead asset, farabursen, is an oligonucleotide targeting miR-17 for treating autosomal dominant polycystic kidney disease (ADPKD), a genetic disorder characterized by the development of fluid-filled cysts in the kidneys. Farabursen is an investigational microRNA inhibitor designed to target miR-17 with preferential kidney exposure, aiming to reduce the growth of cysts and kidney size, as well as delay progression of disease severity in ADPKD. In March 2025, Regulus announced the successful completion of a Phase Ib multiple-ascending dose clinical trial for farabursen.  

Bristol-Myers Squibb’s pending $1.5-billion acquisition of Orbital Therapeutics. Earlier this month (October 2025), Bristol Myers Squibb agreed to acquire Orbital Therapeutics, a privately held bio/pharmaceutical company developing RNA medicines that reprogram the immune system in vivo, for $1.5 billion.

Novartis $1.4-billion acquisition of Tourmaline Bio. Earlier this month (October 2025), Novartis completed its acquisition of Tournaline Bio, a New York-based clinical-stage bio/pharmaceutical company, for $1.2 billion. Tourmaline’s lead candidate is pacibekitug, an anti-IL-6 monoclonal antibody as a treatment option for atherosclerotic cardiovascular disease moving to Phase III development.

Lilly’s $1.3-billion acquisition of Verve Therapeutics. Eli Lilly and Company acquire Verve Therapeutics, a Boston-based clinical-stage bio/pharmaceutical company developing genetic medicines for cardiovascular disease, in a deal worth up to $1.3 billion ($1 billion upfront and $300 million in milestone payments). Verve is developing a pipeline of gene-editing medicines designed to address the drivers of atherosclerotic cardiovascular disease (ASCVD). Verve’s lead program (VERVE-102) is an in vivo gene-editing medicine targeting PCSK9, a gene linked to cholesterol levels and cardiovascular health. 

GSK’s up to $1.15-billion acquisition of IDRx. In January (January 2025), GSK completed its acquisition of IDRx, a Boston-based, clinical-stage bio/pharmaceutical company, in a deal worth up to $1.15 billion ($1 billion upfront and $150 million in milestone payments). The acquisition includes IDRx’s lead molecule, IDRX-42, being developed as a first- and second-line therapy for treating gastrointestinal stromal tumors (GIST). IDRX-42 is a investigational small-molecule tyrosine kinase inhibitor designed to target all key KIT mutations in GIST. FDA granted IDRX-42 fast-track designation for treating patients with GIST after disease progression or intolerance to imatinib. It was also granted orphan drug designations by FDA for the treatment of GIST. The acquisition adds to GSK’s portfolio in gastrointestinal cancers, including ongoing trials with dostarlimab and GSK5764227, a B7-H3-targeted antibody-drug conjugate. This expands GSK’s capabilities in precision oncology, particularly with IDRX-42 for gastrointestinal stromal tumor. 

Partnering deals in 2025
Partnering with smaller companies is another vehicle for the large companies to build their product portfolios. Below are some key deals announced thus far in 2025.

Takeda/Innovent Biologics. Earlier this month (October 2025), Takeda entered into a license and collaboration agreement with Innovent Biologics, a Shanghai-based bio/pharmaceutical company, for the development, manufacturing, and commercialization worldwide outside of Greater China of two late-stage oncology medicines by Innovent Biologics, IBI363 and IBI343, and an exclusive option to license global rights to an early-stage asset, IB3001, a deal worth up to $11.4 billion ($1.2 billion upfront plus $10.2 billion in milestone payments if certain options are exercised and milestones are met).

IBI363 is a late-stage bispecific antibody fusion protein being evaluated in non-small cell lung and colorectal cancers, with potential in additional solid tumor types. IBI343 is a late-stage antibody-drug conjugate (ADC), being evaluated in gastric and pancreatic cancers. IBI3001 is a bispecific ADC is in early development for treating solid tumors. Innovent and Takeda will co-develop IBI363 globally and co-commercialize it in the US, where Takeda will lead the efforts under a joint governance and aligned development plan. Innovent will grant Takeda the exclusive right to commercialize IBI363 outside of the US and Greater China. Innovent will grant Takeda exclusive rights outside of Greater China for IBI343. Additionally, Takeda will receive an exclusive option for the rights outside of Greater China for IBI3001. Depending on exercising certain options by Takeda and reaching certain milestones, Innovent also is entitled to development and sales milestone payments for IBI363, IBI343, and IBI3001 totaling up to $10.2 billion, according to Innovent. Innovent will also be entitled to potential royalty payment for each molecule outside of Greater China, except a profit or loss sharing with respect to IBI363 in the US.

GSK/Hengrui Pharma. Earlier this year (2025), GSK entered into agreements with Hengrui Pharma, a Lianyungang, China-based bio/pharmaceutical company, to develop up to 12 medicines across several therapeutic areas (respiratory, immunology & inflammation, and oncology) in a deal worth up to $12.5-billion ($500 million upfront and $12 billion in milestone payments). The agreements include an exclusive worldwide license (excluding mainland China, Hong Kong, Macau, and Taiwan) for a PDE3/4 inhibitor (HRS-9821) in clinical development for the treatment of chronic obstructive pulmonary disease (COPD) as an add-on maintenance treatment. The agreements also include a scaled collaboration to generate up to 11 programs in addition to HRS-9821, each with its own financial structure. Hengrui Pharma will lead the development of these program up to completion of Phase I trials, including patients outside of China. GSK will have the exclusive option to further develop and commercialize each program worldwide (excluding mainland China, Hong Kong, Macau, and Taiwan), at the end of Phase I or earlier at GSK’s election, as well as certain program substitution rights. GSK will pay $500 million in upfront fees across the agreements, including for the license of the PDE3/4 program. The potential total value of future success-based development, regulatory, and commercial milestone payments to Hengrui Pharma is approximately $12 billion if all programs are optioned and all milestones are achieved. In addition, Hengrui Pharma will be eligible to receive tiered royalties on global product net sales (excluding mainland China, Hong Kong, Macau, and Taiwan).

GSK/ABL Bio. Also, GSK formed this year (2025) a worldwide licensing pact with ABL Bio, a Seongnam, South Korea-based clinical-stage bio/pharmaceutical company developing bispecific antibodies for immuno-oncology and neurodegenerative diseases, in a deal worth up to $2.85 billion ($102 million upfront plus up to $2.75 billion in milestone payments).  Under the agreement, GSK will develop medicines for neurodegenerative diseases by using ABL Bio’s blood-brain barrier (BBB) shuttle platform, Grabody-B. The agreement aims to develop multiple programs for targets across therapeutic modalities, including antibody, polynucleotide or oligonucleotides, such as small interfering RNA (siRNA) and antisense oligonucleotides. ABL Bio’s BBB platform was developed to overcome the limitations of existing drugs that have difficulty crossing the BBB by targeting the insulin-like growth factor 1 receptor (IGF1R) to facilitate drug penetration across the BBB.

GSK/Empirico. Earlier this month (October 2025), GSK and Empirico., a clinical-stage bio/pharmaceutical company, entered into a worldwide exclusive license agreement for Empirico’s EMP-012, a siRNA medicine, in a deal worth up to $745 million ($85 million upfront and $660 million in milestone payments). EMP-012 is currently in a Phase I trial for the treatment of chronic obstructive pulmonary disease (COPD), with the potential for expansion into other inflammatory respiratory diseases. The agreement grants GSK full worldwide development and commercial rights to EMP-012. Empirico will continue to lead the clinical development of EMP-012 through the completion of the ongoing Phase I clinical trial, following which GSK will assume responsibility for worldwide development, regulatory filings, and commercialization. GSK will pay an $85-million upfront payment and up to $660 million in success-based development, regulatory and commercial milestones, as well as tiered royalties on net sales worldwide.

Bristol Myers Squibb/BioNTech. Although not a new company with the success of its partnered COVID vaccine with Pfizer, BioNTech, a Mainz-Germany-based bio/pharmaceutical company, scored a drug-development pact with Bristol-Myers Squibb (BMS) earlier this year (2025) for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody, BNT327, across numerous solid tumor types, in a deal worth up to $11.1 billion ($1.5 billion upfront, $2 billion in non-contingent anniversary payments, and $7.6 billion in milestone payments). The companies will jointly develop and commercialize BNT327, including the development of BNT327 as a monotherapy and in combination with other products. Both companies have the right to independently develop BNT327 in further indications and combinations, including combinations of BNT327 with proprietary pipeline assets. BMS will pay BioNTech $1.5 billion in an upfront payment and $2 billion total in non-contingent anniversary payments through 2028.

Pfizer/3SBio. Earlier this year (2025), Pfizer entered into an exclusive global, ex-China, licensing agreement with 3SBio, a  Shenyang, China-based bio/pharmaceutical company, for the development, manufacturing, and commercialization of 3Sbio’s SSGJ-707, an investigational bispecific antibody for treating multiple cancers, in a deal worth up to $6 billion ($1.25 billion upfront, a $100-million equity stake by Pfizer, and $4.8 billion in milestone payments). SSGJ-707 is a bispecific antibody targeting PD-1 and VEGF, currently undergoing several clinical trials in China for non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors. SSGJ-707 has shown initial efficacy and safety, and. 3SBio plans to initiate the first Phase III study in China in 2025.

Novartis/Monte Rosa Therapeutics. Novartis and Monte Rosa Therapeutics. a clinical-stage bio/pharmaceutical company developing molecular glue degrader-based medicines, entered an agreement to develop degraders for immune-mediated diseases, in a deal worth up to $5.7 billion ($120 million upfront and $5.6 billion in potential milestone payments). The agreement is Monte Rosa Therapeutics’ second with Novartis, in addition to the companies’ global exclusive license agreement for Monte Rosa’s VAV1 degraders, including MRT-6160, announced in October 2024.

Novartis/Arrowhead Pharmaceuticals. Novartis and Arrowhead Pharmaceuticals, a Pasadena, California-based bio/pharmaceutical company, entered a global licensing and collaboration agreement for ARO-SNCA, Arrowhead’s therapy for Parkinson’s disease, and for other additional collaboration targets that will use Arrowhead’s proprietary Targeted RNAi Molecule (TRiM) platform, in a deal worth up to $2.2 billion ($200 million upfront and $2 billion in milestone payments). ARO-SNCA is Arrowhead’s preclinical stage siRNA therapy against alpha-synuclein for the treatment of synucleinopathies, such as Parkinson’s disease. Under the agreement, Novartis will receive an exclusive worldwide license to research, develop, manufacture, and commercialize ARO-SNCA. Novartis will select additional collaboration targets outside of Arrowhead’s current pipeline to be developed using Arrowhead’s TRiM platform.

Bayer/Kumquat Biosciences. In August (August 2025), Bayer and Kumquat Biosciences, a San Diego, California-based clinical-stage biotech company, entered into an exclusive global license and collaboration to develop and commercialize a cancer drug by Kumquat, a KRAS G12D inhibitor, in a deal worth up to $1.3 billion. Kumquat received FDA clearance of the investigational new drug in July 2025. Under the deal with Bayer, Kumquat is responsible for the initiation and completion of the Phase Ia study while Bayer will complete development and commercial activities. In addition, Kumquat will receive up to $1.3 billion, including upfront, clinical, and commercial milestones, and additional tiered royalties on net sales. Kumquat retains an exclusive option to negotiate for participating in profit-loss sharing in the US.

Novo Nordisk/Omeros. To add to build its rare-disease portfolio, Novo Nordiks formed an asset purchase and licensing deal with Omeros, a Seattle, Washington-based bio/pharmaceutical company, for Omeros’ drug candidate, zaltenibart, in clinical development for rare blood and kidney disorders, in a deal worth up to $2.4 billion ($340 million upfront and $2.1 billion in milestone payments). Zaltenibart is an antibody designed to inhibit MASP-3, a protein that acts as a key activator of the complement system’s alternative pathway. Omeros retains certain rights to its preclinical MASP-3 programs unrelated to zaltenibart, including the ability to develop and commercialize small-molecule MASP-3 inhibitors with limited indication restrictions. Following closing of the transaction, Novo Nordisk aims to initiate a global Phase III program for zaltenibart in paroxysmal nocturnal hemoglobinuria, a rare-blood disease, and explore further development in a range of other rare blood and kidney disorders.