This is a quick readout of biopharma M&A activity through Q3 2023 as we track the prominent deals for the year leading up to year-end. Among some of the largest in biopharma are Novo Nordisk’s acquisition of Inversago Pharma offering shareholders up to $1.075 billion in potential payments. Biogen has completed the acquisition of Reata Pharmaceuticals, marking a total value of $7.3 billion, while Novartis is purchasing DTx Pharma, offering shareholders up to $1 billion in total upfront and contingent payments. Eli Lilly has successfully acquired Versanis Bio, offering potential payments of up to $1.925 billion, and Coloplast’s acquisition of Kerecis is marked by a $1.2 billion upfront payment with the possibility of an additional $100 million in milestone payments.
DealForma data for Q3 2023 had 29 deals totaling $15.0 billion in M&A value with $10.5 billion in upfront cash and equity. This follows Q2 2023 which saw 31 deals and a total M&A value of $29.5 billion, the majority of which, $28.7 billion, came from upfront cash. The start of 2023 stood out with Q1 at 25 deals and a total M&A value peak of $51.4 billion on $50.1 billion in upfront cash. Q1 2023 was the highest quarter to date since Q4 2020.
Year-to-date 2023, through the end of Q3, we tracked a total of 85 biopharma M&A deals for a total announced value of $95.9 billion.
M&A Dynamics in Biopharma and Across Life Sciences
Year-to-date through October 2023, the biopharma therapeutics and discovery platforms sector emerged as the frontrunner in M&A activity, boasting a substantial total deal value of $110.9 billion. In contrast, the other healthcare and life sciences sectors all saw a decrease in annual M&A dollar volume to a combined $45.7 billion in announced deal totals.
Biopharma therapeutics and discovery platform M&A also led the annual deal count among the healthcare and life sciences sectors. There were 96 biopharma M&A deals year-to-date through October 2023. Medtech, manufacturing, and other healthcare saw a combined 61 deals.
Top Technologies Across Biopharma and Medtech M&A in 2023
Biologics led the technology list for the largest total biopharma deal value at $81.0 billion in year-to-date 2023 through October. This was followed by $30.3 billion in small molecule M&A. Medtech, devices, digital health, and wearables saw $11.9 billion in total announced M&A value, followed by $4.5 billion for genomics and tools, and $3 billion for cell therapy.
Notable Biopharma M&A in Q3 2023
Novartis’ Acquisition of DTx Pharma (July 2023)
Novartis is acquiring DTx Pharma for its neuroscience and xRNA platform, including a preclinical treatment in development for CMT1A (DTx-1252). DTx Pharma’s shareholders will receive $500 million initially, with the potential for an additional $500 million based on milestones.
Novo Nordisk’s Acquisition of Inversago Pharma (August 2023)
Novo Nordisk is acquiring Inversago Pharma for its primary assets, including INV-202 for diabetic kidney disease, INV-300 for Alzheimer’s, and INV-101 for pulmonary fibrosis. Inversago’s shareholders may receive up to $1.075 billion in total with potential milestones.
Eli Lilly’s Acquisition of Versanis Bio (August 2023)
Eli Lilly is acquiring Versanis Bio for bimagrumab targeting obesity, muscular atrophy, and cachexia. Versanis Bio, established in 2021 by Aditum Bio, obtained bimagrumab rights from Novartis. With potential milestones, the acquisition could provide Versanis Bio shareholders up to $1.925 billion.
Coloplast’s Acquisition of Kerecis (August 2023)
Coloplast is acquiring Kerecis for its fish-skin graft products used in wound management. Kerecis stakeholders will receive a $1.2 billion upfront payment and potentially $100 million in milestones.
Biogen’s Acquisition of Reata Pharmaceuticals (September 2023)
Biogen is acquiring Reata Pharmaceuticals for $7.3 billion, offering shareholders $172.5 per share at a 60% premium over the stock’s one-day prior close. Reata Pharmaceuticals’ notable assets include the approved Skyclarys to treat Friedreich’s ataxia, ocular inflammation, and pain. Reata also has Phase I cemdomespib in development for treating diabetic neuropathies.
