Our quarterly review of biopharma therapeutics and platforms dives deep into M&A deals. Vertex Pharmaceuticals acquired Alpine Immune Sciences in April 2024, enhancing its immunotherapy portfolio. Genmab acquired ProfoundBio on May 2024 for $1.8 billion upfront, securing critical assets targeting various cancers, including phase II Rinatabart Sesutecan for solid tumors. In July 2024, Merck acquired EyeBio for up to $3 billion, with $1.3 billion upfront and up to $1.7 billion in milestone payments. It added Restoret for diabetic macular edema and age-related macular degeneration to its portfolio. ONO Pharmaceutical finalized its $2.4 billion acquisition of Deciphera Pharmaceuticals in June 2024, acquiring assets such as Ripretinib for gastrointestinal stromal tumors (GIST) and phase III Vimseltinib for solid tumors. Additionally, Biogen completed the acquisition of Human Immunology Biosciences (HI-Bio) in July 2024 for $1.2 billion upfront and up to $650 million in development milestones. HI-Bio’s key asset, felzartamab, is an anti-CD38 monoclonal antibody for immune-mediated diseases, including primary membranous nephropathy (PMN) and antibody-mediated rejection (AMR) in kidney transplant recipients, with Breakthrough Therapy and Orphan Drug Designations from the US FDA. Details to follow.
Biopharma Therapeutics and Platform M&A
During H1 2024, biopharma therapeutics and platform companies engaged in 48 M&A deals. In Q2 alone, there were 26, amounting to $21.8 billion with contingents and $17.9 billion in cash.
In Q1, 22 deals totaled $19.1 billion in contingents and $16.1 billion in cash. Our quarterly breakdown shows a slight increase in the number and value of deals from Q1 to Q2, highlighting an upward trend in M&A.
Biopharma TX vs. Other Life Sciences M&A
During H1 2024, M&A in biopharma therapeutics and life sciences shifted significantly compared to 2023. Biopharma therapeutics and discovery platforms saw 60 deals totaling $38.4 billion, down from 122 worth $158.6 billion in 2023. MedTech, device, digital therapeutics, and wearables segment had 25 deals worth $16 billion in 2024, compared to 50, totaling $14.5 billion in 2023. The diagnostics, sequencing, omics, and tools sector had 41 deals worth $9.4 billion in 2024, whereas in 2023 had 50 totaling $13.1 billion.
During H1 2024, manufacturing tech and other categories saw 50 deals totaling $19.3 billion, compared to 42 worth $24.8 billion in 2023. Overall, the M&A activity in 2024 included 182 deals worth $197 billion in biopharma, 75 worth $30.5 billion in MedTech, 91 worth $22.4 billion in diagnostics, and 92 at $44.1 billion in manufacturing tech. A noticeable decline in number and deal value across most sectors from 2023 to 2024.
Top Biopharma Modalities M&A – 2023-2024 YTD
From 2023 to Q2 2024, the biopharma sector saw 138 M&As across various modalities. Key figures include:
- Biologics: 58 deals worth $109.3 billion with contingents and $101.6 billion in cash.
- Small Molecules: 58 deals valued at $64.7 billion with contingents and $59.6 billion in cash.
- Immunotherapy: 5 deals totaling $7.4 billion with contingents and $6.8 billion in cash.
- Gene Therapy and Vectors: 7 deals amounting to $1.9 billion with contingents and $1.4 billion in cash.
- Cell Therapy: 8 deals worth $1.5 billion with contingents and $1.2 billion in cash.
- Gene Editing/CRISPR: 2 deals valued at $200 million with contingents and $100 million in cash.
These total M&As amounted to $184.9 billion with contingents and $170.6 billion in cash.
Top Biopharma Therapeutics and Platform M&A Deals – Q2 2024
Vertex Pharmaceuticals acquired Alpine Immune Sciences – April 2024
Vertex is acquiring Alpine Immune for $4.9 billion, paying $65 per share in cash, representing a 38.18% premium. Alpine Immune’s critical assets include Acazicolcept (ALPN-101) in phase 2 for Systemic Lupus Erythematosus and Povetacicept (ALPN-303) in phase 1/2b for Lupus Nephritis, phase 1b for immune thrombocytopenia, idiopathic thrombocytopenic purpura, autoimmune hemolytic anemia, and agglutinin, along with a directed evolution platform.
Merck acquired EyeBio – May 2024
Merck completed the acquisition of EyeBio for up to $3 billion, including $1.3 billion upfront and up to $1.7 billion in development, regulatory, and sales milestone payments. EyeBio’s critical assets include Restoret, a phase Ib/2a candidate for diabetic macular edema and age-related macular degeneration, and preclinical assets targeting retinal diseases.
ONO Pharmaceutical acquired Deciphera Pharmaceuticals for $2.4B – April 2024
ONO Pharmaceutical completed the acquisition of Deciphera Pharmaceuticals for approximately $2.4 billion, paying $25.6 per share at a 74.7% one-day premium. Deciphera’s critical assets include the approved drug Ripretinib for gastrointestinal stromal tumors (GIST), phase III Vimseltinib for solid tumors, phase I DCC-3116 for GIST, DCC-3084 for solid tumors, and preclinical DCC-3009 for GIST.
Biogen acquired HI-Bio for $1.8B – May 2024
Biogen acquired Human Immunology Biosciences (HI-Bio) for $1.2 billion upfront. HI-Bio’s key asset, felzartamab, is a phase II anti-CD38 monoclonal antibody for immune-mediated diseases, including primary membranous nephropathy (PMN) and antibody-mediated rejection (AMR) in kidney transplant recipients. Felzartamab has US FDA Breakthrough Therapy and Orphan Drug Designations. HI-Bio is also eligible for up to $650 million in development milestones.
Genmab acquired ProfoundBio – April 2024
Genmab finalized its acquisition of ProfoundBio for $1.8 billion upfront. ProfoundBio’s leading assets include phase II Rinatabart Sesutecan for solid tumors, phase I PRO-1160 for nasopharyngeal cancer, non-Hodgkin’s lymphoma, renal cell carcinoma, PRO-1107 for solid tumors, and several undisclosed preclinical therapies targetin