DealForma review of Biopharma M&A Q1 2025 saw a resurgence, with several high-value acquisitions targeting CNS, oncology, cardiovascular, and autoimmune indications. Johnson & Johnson kicked off the year with a $14.6 billion acquisition of Intra-Cellular Therapies in January, completed in April, reinforcing its position in neuropsychiatric disorders. Merck KGaA followed in February with a $3.5 billion deal for SpringWorks Therapeutics, expanding its rare tumor and oncology pipeline.
In February, Bain Capital announced a $3.3 billion acquisition of Mitsubishi Tanabe Pharma, strengthening its footprint in CNS and autoimmune diseases. Novartis, in a strategic cardiovascular move, acquired Anthos Therapeutics in February for $925 million upfront and up to $2.2 billion in milestones, finalizing by April. Rounding out the quarter, Mallinckrodt revealed in March its plan to merge with Endo in a $6.7 billion stock-and-cash deal, consolidating assets across pain, neurology, and sterile injectables, with closure expected in H2 2025.
In Q1 2025, the biopharma sector saw 24 M&A deals totaling $32.3 billion (including contingent payments), with $21.9 billion paid upfront in cash, averaging $1.5 billion per deal.
Though deal volume fell below Q4 2024’s 29 transactions, acquirers spent over three times more, $10.5 billion total ($6.9 billion in cash) with average upfronts exceeding $1.5 billion, more than triple the prior quarter’s $459 million, indicating fewer, high-value, platform-focused acquisitions.
Together, the last 2 quarters saw 53 deals totaling $42.8 billion, but the sharp surge in Q1 2025 signals front-loading capital, reflecting confidence in high-value therapeutic and tech platforms.
Biopharma Therapeutics and Other Technologies Group Subsector M&A
In Q1 2025, buyers concentrated on drug-focused assets, announcing 24 biopharma and discovery-platform deals worth $32.3 billion, already over half of 2024’s total ($62.2 billion across 101 deals). In contrast, activity in other tech segments declined sharply: medtech saw 2 deals worth $400 million (vs. 5 deals for $14.8 billion in 2024), while contract services and manufacturing had no disclosed-value deals after 19 deals totaling $1.1 billion last year.
A single “Other Healthcare” deal matched 2024’s count but came without a disclosed value. Overall, 2025 began with fewer total deals (36 vs. 134 in 2024) but a clear shift toward high-value therapeutic and platform acquisitions, highlighting appetite for core drug-development assets while interest in secondary technologies, like devices, diagnostics, and services, temporarily wanes.
Top Modalities in Biopharma M&A – Q1 2025
In Q1 2025, M&A was dominated by traditional small-molecule assets, which made up half of the 22 biopharma deals and drove $26.2 billion of the $32.4 billion total, $19.3 billion in cash. Large-molecule platforms followed with 7 deals totaling $4.7 billion ($1.8 billion cash), reflecting more cautious investment. Advanced modalities remained niche: cell therapy saw 2 deals worth $1.3 billion, while gene-editing/CRISPR transactions also numbered 2 but totaled just $185 million.
Top M&A Deals in Q1 2025
Johnson & Johnson acquiring Intra-Cellular Therapies – January 2025
Johnson & Johnson acquired Intra-Cellular Therapies in January 2025 for $14.6 billion in cash ($132/share, a 40% premium), with the deal completed on April 2, 2025. The acquisition strengthens J&J’s presence in central nervous system (CNS) and neuropsychiatric disorders. Intra-Cellular’s lead product, Caplyta, is approved for schizophrenia, bipolar disorder, depression, autism, and sleep disorders. Its pipeline includes lenrispodun (Phase II, Parkinson’s and heart failure), lumateperone deuterated (anxiety, psychosis), ITI-333 (pain), and ITI-1020 (oncology), alongside several preclinical CNS assets. The company, focused on small molecules and immunotherapy, now operates as a J&J business unit.
Mallinckrodt acquiring Endo – March 2025
Mallinckrodt announced the acquisition of Endo in March 2025 in a stock-and-cash deal valued at an enterprise value of $6.7 billion, expected to close in the second half of 2025. Endo shareholders will receive $80 million in cash, with ownership split nearly evenly between Mallinckrodt (50.1%) and Endo (49.9%). The merged entity will be listed on the NYSE. Endo contributes 27 approved branded drugs across pain, neurology, cardiovascular, oncology, infectious disease, and endocrinology, including products like Aveed, Frova, Percocet, and Vasostrict. It also brings 101 generics and 40 sterile injectables in development. Post-merger, the generics and injectables businesses will be spun off into a standalone company.
Merck KGaA acquiring SpringWorks – February 2025
Merck KGaA announced the acquisition of SpringWorks Therapeutics in February 2025 for $3.5 billion in cash ($47/share), with the deal expected to close by April 25, 2025. SpringWorks specializes in small-molecule oncology therapeutics, particularly for rare tumors. Its lead asset, Ogsiveo (nirogacestat), is approved for adult desmoid tumors and in Phase II trials for pediatric desmoid tumors, granulosa cell tumors, and multiple myeloma. Other pipeline candidates include Mirdametinib (pre-registration), Brimarafenib (Phase I/II), SW-682 (Phase I), and SW-3431 (preclinical), addressing neurofibromas, gliomas, MAPK pathway tumors, and uterine cancers.
Bain Capital acquiring Mitsubishi Tanabe Pharma – February 2025
Bain Capital announced in February 2025 the acquisition of Mitsubishi Tanabe Pharma for approximately $3.3 billion upfront (JPY 510 billion), with the deal expected to close in Q3 2025. Mitsubishi Tanabe’s portfolio includes Uplizna for neuromyelitis optica spectrum disorder (NMOSD) and marketed drugs for B-cell lymphoma (Zynlonta), diabetes (Canalia), nephropathy (Invokana), and tardive dyskinesia (Dysval). Its pipeline covers schizophrenia (MT-210), Parkinson’s (ND-0612), hypertension, protoporphyria, spinal cord injury, myasthenia gravis, and systemic sclerosis. The company brings strengths in small molecules and antibody-based therapies, bolstering Bain’s footprint in complex CNS and autoimmune conditions.
Novartis acquiring Anthos Therapeutics – February 2025
Novartis announced the acquisition of Anthos Therapeutics in February 2025 for $925 million upfront and up to $2.2 billion in milestones, completed on April 3, 2025. The acquisition centers on abelacimab, a monoclonal antibody targeting FXI inhibition, in Phase III trials for atrial fibrillation and venous thromboembolism and Phase II for stroke and thrombosis. Originally licensed from Novartis in 2019, abelacimab enhances its cardiovascular pipeline and reinforces its strategic focus on thrombosis and stroke prevention.
Also check out M&A – Biopharma Therapeutics & Platforms – Q1 2024
