Our quarterly review of biopharma therapeutics and platforms explores major M&A deals across various therapeutic areas. Eli Lilly acquired Morphic for $3.2 billion, focusing on inflammatory bowel disease (IBD) and autoimmune, pulmonary, and cancer programs. Semnur Pharmaceuticals merged with Denali Capital, targeting lumbosacral radicular pain with a revised equity value of up to $2.5 billion. Mankind Pharma expanded its women’s health and assisted reproductive therapy portfolio with the $1.6 billion acquisition of Bharat Serums. Boehringer Ingelheim strengthened its immuno-oncology pipeline by acquiring Nerio Therapeutics for $1.3 billion, while Otsuka America acquired Jnana Therapeutics for $800 million, focusing on phenylketonuria treatments.
In Q3 2024, the biopharma sector saw 21 M&A deals in therapeutics and platforms, totaling $10.7 billion with contingents or $8.9 billion in cash-only deals. This represents a slight drop from Q2 2024, where 27 deals raised $22.0 billion with contingents or $18.2 billion in cash.
Over the last two quarters, 48 biopharma M&A deals have been completed, totaling $32.7 billion in contingents and $27.1 billion in cash. Despite the drop in deal value between Q2 and Q3, steady activity continued in the sector.
Biopharma Tx vs. Other Life Sciences M&A
YTD M&A activity in biopharma and life sciences for 2024 has significantly declined compared to 2023. In biopharma therapeutics and discovery platforms, 92 deals totaling $52.2 billion, down from 121 deals worth $159.1 billion in 2023 a significant drop in volume and value. Meanwhile, deal volume remained steady in the medtech, device, digital therapeutics, and wearables at 49, with a slight increase in value from $17.1 billion in 2023 to $21.5 billion in 2024 YTD.
In 2024, YTD, diagnostic tools, sequencing, and omics saw 63 deals totaling $10.8 billion, compared to 50 worth $13.1 billion in 2023. Manufacturing tech and other categories experienced the highest activity, with 84 deals totaling $22.3 billion in 2024, up from 44 deals but a slightly higher value of $25.2 billion in 2023. Overall, total deal counts across all categories decreased year-on-year, with aggregate deal values exhibiting a notable decline.
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 Top Biopharma Modalities M&A – 2023-2024 YTD
In the biopharma sector for 2023-2024 YTD, small molecules and biologics dominated M&A activity. Small molecules led with 72 deals valued at $73.7 billion (including contingents), while biologics (antibodies, DNA, RNA, proteins) followed with 65 deals totaling $109.6 billion. Immunotherapy saw 5 deals worth $7.4 billion, gene therapy and vectors had 7 deals totaling $1.9 billion, and cell therapy accounted for 8 deals at $1.5 billion. Gene editing/CRISPR had the fewest transactions, with 2 deals worth $200 million. There were 159 deals, with a combined M&A value of $194.3 billion, or $179.6 billion in cash-only deals.
Top Biopharma Therapeutics and Platform M&A Deals – Q3 2024
Eli Lilly Acquires Morphic – July 2024
Eli Lilly acquired Morphic in July 2024, targeting its Phase II A4B7 integrin inhibitor, MORF-057, for inflammatory bowel disease (IBD) and several preclinical programs in autoimmune, pulmonary, and cancer treatments. The $3.2 billion deal, at $57 per share with a 79% premium, was completed on August 16, 2024.
Semnur Pharmaceuticals Reverse Merger with Denali Capital – July 2024
Semnur Pharmaceuticals, a Scilex subsidiary, announced a reverse merger with Denali Capital in July 2024. The combined company will focus on advancing Semnur’s Phase III SP-102, a non-opioid gel for lumbosacral radicular pain. The deal has a pre-transaction equity value of $2 billion and potential gross proceeds of $40 million. It is expected to close by September 2024 with a revised equity value of up to $2.5 billion.
Mankind Pharma Acquires Bharat Serums and Vaccines – July 2024
Mankind Pharma acquired Bharat Serums and Vaccines from Advent International for $1.6 billion. This deal expanded Mankind’s portfolio with critical women’s health products. It assisted reproductive therapy (ART) assets, enhancing its presence in the Indian market and critical care segments backed by advanced R&D platforms.
Boehringer Ingelheim Acquires Nerio Therapeutics – July 2024
Boehringer Ingelheim acquired Nerio Therapeutics in July 2024 for $1.3 billion upfront. The acquisition strengthens Boehringer’s immuno-oncology pipeline with preclinical immune checkpoint inhibitors targeting protein tyrosine phosphatases N1 and N2 (PTPN1 and PTPN2).
Otsuka Acquires Jnana Therapeutics – August 2024
Otsuka America, a subsidiary of Otsuka Pharmaceutical, acquired Jnana Therapeutics in August 2024 for $800 million upfront, plus up to $325 million in development and regulatory milestones. Jnana’s critical assets include JNT-517, a Phase Ib/II small molecule inhibitor for phenylketonuria, and the RAPID platform. The acquisition was completed in September 2024.
Also check out Biopharma Therapeutics and Platforms Mergers & Acquisitions – Q2 2024
