Our Healthcare and Life Sciences Review 2024 highlights activity in R&D partnerships, M&A, venture funding, and IPOs, reflecting innovation and strategic growth across the industry. In R&D, Arrowhead Pharmaceuticals partnered with Sarepta Therapeutics in a $500 million cash and $325 million equity deal, with up to $10 billion in milestones targeting rare diseases. GSK collaborated with Flagship Pioneering, committing $150 million upfront and up to $720 million per program for respiratory and immunology breakthroughs. Jiangsu Hengrui Pharmaceuticals partnered with Hercules in a $100 million upfront deal, plus $5.8 billion in milestones for GLP-1 therapies. M&A highlights include Novo Holdings’ $16.5 billion acquisition of Catalent, Johnson & Johnson’s $13.1 billion buyout of Shockwave Medical, and Cencora’s $4.6 billion acquisition of Retina Consultants of America.
Venture funding boomed, with Xaira Therapeutics raising $1 billion to pioneer AI-driven drug discovery, Radiology Partners securing $720 million to fuel growth and innovation, and Kailera Therapeutics launching with $400 million to develop obesity treatments. IPOs were led by Galderma’s $2.5 billion listing on the SIX Swiss Exchange, BrightSpring Health’s $693 million debut, and PACS Group raising $518 million.
Global Healthcare and Life Sciences R&D Partnerships
In 2024, the global healthcare and life sciences sector recorded 678 R&D partnerships, slightly surpassing 2023’s 677 deals. Total deal value rose to $195.6 billion, up from $192 billion in 2023, with upfront payments increasing modestly from $13.6 billion to $13.9 billion. Over two years, the sector saw 1,355 deals totaling $387.6 billion, including $27.5 billion in upfront payments.
Top R&D Partnerships in 2024
Arrowhead development deal with Sarepta Therapeutics – (November 2024)
Arrowhead Pharmaceuticals granted Sarepta Therapeutics exclusive global rights to develop therapies for rare genetic diseases, covering 4 Phase I/II and 3 preclinical programs. Arrowhead received $500 million cash and $325 million equity (11.93 million shares at a 35% premium) and will earn $250 million annually over five years, plus up to $10 billion in milestones and low double-digit royalties.
GSK research partnership with Flagship Pioneering – (July 2024)
GSK partnered with Flagship Pioneering to discover and develop up to 10 transformational medicines and vaccines, focusing on respiratory and immunology. Initial research conducted through Flagship’s bioplatforms companies leverages novel modalities and technologies. The collaboration is jointly funded with an upfront commitment of $150 million. If GSK licenses the programs, Flagship is eligible for up to $720 million per program in upfront development, sales milestones, preclinical funding, and royalties.
Hengrui development and commercialization deal with Hercules – (May 2024)
Jiangsu Hengrui Pharmaceuticals granted Hercules exclusive global rights (excluding Greater China) to develop and commercialize three GLP-1 therapies targeting undisclosed indications. Hengrui received $100 million upfront and a 19.9% equity stake in Hercules. The deal includes $10 million in near-term payments, $200 million in development and regulatory milestones, $5.8 billion in sales milestones, and royalties ranging from low single to low double digits.
Global Healthcare and Life Sciences M&A
In 2024, the healthcare and life sciences sector saw 437 M&A deals, a sharp increase from 273 in 2023. Despite this, total M&A value with contingents fell to $137.3 billion from $214.8 billion in 2023, while cash value excluding contingents dropped to $120.6 billion from $201.1 billion. Over two years, the sector reported 710 deals worth $352.1 billion with contingents and $321.7 billion in cash.
Top M&A in 2024
Novo Holdings acquiring Catalent for $16.5B to take the company private – (February 2024)
Novo Holdings announced the $16.5 billion acquisition of Catalent, a leading provider of development and manufacturing solutions for pharma and biotech companies, at $63.5 per share, a 16.5% premium. Following regulatory reviews, including FTC antitrust scrutiny and European Commission approval in December, the acquisition was finalized on December 18, 2024. Novo Holdings agreed to divest three fill-finish sites to Novo Nordisk as part of the transaction.
Johnson & Johnson acquiring Shockwave Medical for $13.1B – (April 2024)
Johnson & Johnson announced the $13.1 billion acquisition of Shockwave Medical, a leader in medical devices for calcified cardiovascular diseases, including Shockwave C2+, IVL, and L6. Shockwave stakeholders received $335 per share in cash, reflecting a 4.7% premium. The company will operate as a business unit within Johnson & Johnson MedTech. The acquisition was completed on May 31, 2024.
Cencora acquiring Retina Consultants of America – (November 2024)
Cencora acquired Retina Consultants of America (RCA) from Webster Equity Partners for $4.6 billion in cash, with adjustments for working capital and net debt. RCA, a top retina specialist management organization, will retain a minority stake and continue operations with its affiliated practices and physicians. The deal strengthens Cencora’s specialty care capabilities and RCA’s growth and research efforts. Based on performance milestones, RCA may receive up to $500 million in contingent payments by 2027–2028.
Global Healthcare and Life Sciences Venture Activity
In 2024, the healthcare and life sciences sector recorded 1,156 venture funding rounds, slightly below 2023’s 1,194 rounds. However, total funding soared to $48.4 billion, well above the $40.4 billion raised in 2023. Over the two years, the sector secured $88.7 billion across 2,350 rounds.
Top Venture Activity in 2024
Xaira – Series A – $1B – (April 2024)
Xaira Therapeutics, a San Francisco biotech startup, launched in 2024 with $1 billion in funding led by ARCH Venture Partners and Foresite Labs. Leveraging AI technologies from David Baker’s lab at the University of Washington, including RFdiffusion and RFantibody, Xaira focuses on innovative protein and antibody design to transform drug discovery and development.
Radiology Partners – Private – $720M – (February 2024)
Radiology Partners, the most extensive U.S. radiology practice, raised $720 million in growth equity, exceeding its $300 million target by 140%. The El Segundo-based company will invest $500 million in growth and innovation while restructuring $2.8 billion in debt, extending maturities to 2028–2029. Improved liquidity includes $390 million available via its credit line, marking recovery after negative cash flow in 2022–2023.
Kailera Therapeutics – Series A – $400M – (October 2024)
Kailera Therapeutics launched in 2024 as a clinical-stage biopharmaceutical focused on next-generation therapies for obesity and related conditions. Backed by a $400 million series A financing co-led by Atlas Venture, Bain Capital Life Sciences, and RTW Investments, with additional support from Lyra Capital, Kailera is advancing a pipeline of injectable and oral therapies positioned as potential best-in-class treatments for chronic weight management.
Global Healthcare and Life Sciences IPO Activity
In 2024, the healthcare and life sciences sector saw 54 IPOs, up from 32 in 2023, with funds raised to $9.7 billion from $7.9 billion. Over two years, the sector completed 86 IPOs, raising $17.6 billion.
Top IPO in 2024
Galderma – IPO – $2.5B – (March 2024)
Galderma Group AG, a dermatology-focused pharmaceutical company based in Zug, Switzerland, raised approximately $2.5 billion in its IPO on the SIX Swiss Exchange, pricing shares at $57 each. The IPO, including an over-allotment option, marked one of Europe’s most significant for the year, valuing the company at around $17 billion.
BrightSpring – IPO – $693M – (January 2024)
BrightSpring Health Services Inc. raised $693 million in its IPO, pricing below the expected range. Serving over 400,000 patients daily through 10,000+ clinical providers and pharmacists, the U.S.-based company offers a nationwide home and community-based healthcare platform focused on complex care for senior and specialty patients. BrightSpring operates across all 50 states.
PACS Group – IPO – $518M – (March 2024)
PACS Group, Inc. successfully closed its IPO, raising approximately $450 million from selling 21,428,572 shares at $21.0 per share. Additionally, underwriters exercised a 30-day option to purchase 3,214,284 additional shares at the same price, further boosting proceeds. The funds raised are before deducting underwriting discounts, commissions, and offering expenses.
Also check out Infectious Disease R&D Partnerships, M&A, Ventures, and IPO Activity – 2024 Review