March 2025 Life Sciences Update

07

Will M&A Activity Rebound in 2025?

CONTENTS

Global Biotech Pharmaceutical M&A Activity by Year

• Many pharma companies saw a significant increase in revenue from 2021 to 2022, positioning them to pursue strategic M&A activity to bolster their drug pipelines as key patents near expiration. • After over $140 billion in M&A activity in 2023, deal volume dropped 67.4% YOY in 2024 to $46.5 billion. While deal count in • So far in 2025, M&A activity has been robust, totaling $16.8 billion, largely driven by Johnson & Johnson’s $14.6 billion acquisition of Intra-Cellular Therapies — the largest deal since March 2023. • Part of the decline in 2024 deal volume was the surge in 2023 activity. It takes time for mergers to be fully integrated into operations. Now that most of those M&A deals have been fully integrated, expectations are that M&A activity will increase in 2025. • Early- to late-stage biotech companies can be prime targets for M&A activity. This process is a major driver of equity recycling and real estate activity for life sciences. 2024 was flat compared to 2023, the average deal size fell to $1.2 billion — the smallest in seven years.

Deal Volume

Annual Average (2017-2024)

Deal Count (RHS)

$250

50

45

$200

40

35

$150

30

25

$100

20

M&A Deal Volume ($billions)

15

$50

10

5

$0

0

2018

2019

2020

2021

2022

2023

2024

2025 YTD

Source: BioPharma Dive

38 38

Cushman & Wakefield