Biopharma M&A in 2023 navigates shifting climate with calculated bets on de-risked targets

[See Less/Adobe Stock]

2023 biopharma M&A trends

M&A activity has rebounded to a degree in 2022 and 2023, but deal-making is still below some of the top years in recent decades, including 2011, 2014, and 2015. While M&A remains a fact of life in biopharma, buyers are selective about disease focus areas. Oncology, immunology and obesity/cardiometabolic therapies are a focus of many recent deals. Similarly, recent acquisitions tend to focus on de-risked targets in phase 3 or already on the market, reflecting acquirers’ risk aversion.

Despite increasing interest rates and FTC scrutiny, biopharma M&A activity remains resilient. “I do think that the market is remaining consistent,” said Rebecca A. Guzman, a partner at Duane Morris LLP. Guzman serves as a vice chair of the M&A division at the firm. “The regulatory landscape is obviously changing, and it’s something we’re…

Read more
  • 0

Lilly wraps up acquisition of Versanis, marking the fifth largest pharma deal of 2023

Top 5 biggest M&A deals in the pharmaceutical industry as of August 14, 2023: Pfizer/Seagen ($43B), Biogen/Reata Pharmaceuticals ($7.3B), Astellas Pharma/Iveric Bio ($5.9B), Merck & Co./Prometheus Biosciences ($10.8B), Eli Lilly/Versanis ($1.93B).

Eli Lilly just wrapped up its acquisition of Versanis Bio in a $1.9 billion deal, the pharma giant announced today. The deal marks Lilly’s latest move to build up its pipeline of potential obesity and diabetes treatments, which promises to be a notable growth area for the company. Lilly recently completed its submission of tirzepatide for chronic weight management to the FDA.

The company reported positive Phase 3 results from the SURMOUNT-3 and SURMOUNT-4 studies, showing the highest levels of weight loss observed so far in the SURMOUNT program.

Tirzepatide is a dual glucose-dependent insulinotropic polypeptide (GIP) and glucagon-like peptide-1…

Read more
  • 0