Our Q3 2025 review highlights sustained dealmaking momentum across oncology, neurology, cardiometabolic, autoimmune, respiratory, and kidney diseases. R&D partnerships reflected strong demand for high-value innovation, led by GSK’s July deal with Hengrui Pharma for global rights to COPD candidate HRS-9821 ($500 million upfront, up to $12 billion in milestones), DoveTree’s August $6+ billion AI-enabled molecular glue collaboration with XtalPi across oncology, inflammation, neurology, and metabolic diseases, and Novartis’s September $5.4 billion immunology degrader agreement with Monte Rosa Therapeutics.
M&A was dominated by BD’s $17.5 billion Reverse Morris Trust merger with Waters, forming a diagnostics and life sciences leader targeting $9 billion in revenue and $345 million in synergies; Merck’s $10 billion acquisition of Verona Pharma, gaining Ohtuvayre for COPD; and Genmab’s $8 billion purchase of Merus, expanding its oncology and immunotherapy portfolio. Venture financing stayed strong, with MapLight Therapeutics raising $373 million in July for CNS programs, Kriya Therapeutics securing $320 million in September to grow its gene therapy pipeline for diabetes, eye, and liver diseases, and Strive Health closing $550 million in equity and debt to scale AI-driven kidney care.
Public listings remained active as Heartflow (Nasdaq: HTFL) raised $364 million in August for its AI-based coronary diagnostics platform, LB Pharmaceuticals (Nasdaq: LBRX) raised $285 million in September to fund neuropsychiatric drug development, and GenFleet Therapeutics (HKEX: 2595) debuted with a $234 million IPO to advance oncology and autoimmune programs.
Global Healthcare and Life Sciences R&D Partnerships
In Q3 2025, healthcare and life sciences R&D partnerships totaled 156 deals worth $72.1 billion, with $3.8 billion in upfront commitments. While upfronts declined from Q2 ($5.2 billion), overall deal value rose from $60.5 billion across 151 partnerships. Combined, Q2–Q3 of 2025 delivered 307 deals valued at $132.6 billion with $9 billion upfront.
Top R&D Partnerships Global Healthcare and Life Sciences
Hengrui Pharma development and commercialization deal with GSK – July 2025
GSK secured exclusive global rights (ex-Greater China) to develop and commercialize Hengrui’s HRS-9821, a Phase I PDE3/4 inhibitor for COPD, with plans for a dry-powder inhaler formulation. The deal also grants GSK options on 11 additional early-stage programs through Phase I, with the flexibility to substitute. Hengrui will receive $500 million upfront and is eligible for up to $12 billion in milestones, plus tiered royalties.
XtalPi development and commercialization deal with DoveTree – August 2025
DoveTree gained exclusive global rights to develop and commercialize XtalPi’s AI-enabled molecular glue therapies targeting cancer, inflammation, neurology, and metabolic diseases. The collaboration pairs XtalPi’s AI/ML drug discovery platform with DoveTree’s biological and R&D expertise. XtalPi will receive $51 million upfront, up to $49 million in near-term payments, and as much as $5.9 billion in milestones, plus tiered royalties.
Monte Rosa Therapeutics license option deal with Novartis – September 2025
Novartis secured exclusive global rights to discover and develop molecular glue degraders for immune-mediated diseases using Monte Rosa’s AI/ML-enabled QuEEN platform. The agreement includes one lead immunology program plus options on two additional preclinical programs. Monte Rosa will handle research, while Novartis takes on development and commercialization. Terms include $120 million upfront, up to $60 million in option fees, $180 million in preclinical milestones, and as much as $5.4 billion in development, regulatory, and commercial milestones, along with tiered royalties.
Global Healthcare and Life Sciences M&A
In Q3 2025, healthcare and life sciences M&A delivered 157 deals valued at $70.5 billion, including $60.7 billion in cash, more than double Q2’s $32.8 billion ($28.7 billion cash) across 153 deals. Despite a slight increase in deal count, transaction scale expanded sharply, bringing combined Q2–Q3 2025 activity to 310 deals worth $103.3 billion ($89.4 billion in cash).
Top M&A Global Healthcare and Life Sciences
BD’s Biosciences & Diagnostic Solutions Business merged with Waters in a Reverse Morris Trust – July 2025
BD will merge its Biosciences & Diagnostic Solutions unit, including flow cytometry, multi-omics, molecular testing, and infectious disease diagnostics, with Waters through a $17.5 billion Reverse Morris Trust. Waters shareholders will hold 60.8% of the combined company, BD shareholders 39.2%. Pro forma 2025 guidance calls for $6.5 billion in revenue and $2 billion in adjusted EBITDA, with $345 million in annualized synergies expected by 2030. The deal structure includes a $4 billion cash distribution to BD shareholders, $4 billion in assumed debt, and equity valued at $9.5 billion. Closing is targeted for Q1 2026, creating a $9 billion revenue company with a 32% operating margin outlook by 2030.
Merck acquiring Verona Pharma – July 2025
Merck will acquire Verona Pharma for $10 billion, gaining Ohtuvayre (ensifentrine), a dual PDE3/4 inhibitor approved in June 2024 for COPD. Ohtuvayre is also in Phase II trials for bronchiectasis, cystic fibrosis, and asthma, with a COPD fixed-dose combo in early development. Verona shareholders will receive $107 per ADS ($13.375 per ordinary share). The transaction is expected to close in Q4 2025.
Genmab acquiring Merus for $8B – September 2025
Genmab will acquire Merus for $8 billion ($97 per share in cash), a 41% premium to the prior close. Merus brings a portfolio led by approved Bizengri (HER2/HER3; adenocarcinoma, NSCLC), Phase III petosemtamab (EGFR/LGR5; head and neck cancer, colorectal), Phase II MCLA-129 (solid tumors), and early-stage immuno-oncology candidates ONO-4685 and INCA-33890. The deal also adds Merus’ Multiclonics antibody platform. The tender offer requires at least 80% shareholder acceptance (or 75% under certain conditions).
Global Healthcare and Life Sciences Venture Activity
In Q3 2025, healthcare and life sciences ventures raised $5.8 billion across 86 rounds, up in value despite fewer financings than Q2’s $4.7 billion from 96 rounds. Combined, Q2–Q3 2025 saw 182 rounds raising $10.5 billion.
Top Venture Activity Global Healthcare and Life Sciences
MapLight Therapeutics – Series D – $372.5M – July 2025
Novo Holdings joined a $373 million series D to advance MapLight’s CNS pipeline. Proceeds will primarily fund Phase 2 trials of lead candidate ML-007C-MA, an oral fixed-dose M1/M4 muscarinic agonist–anticholinergic combo for schizophrenia and Alzheimer’s disease psychosis, designed to maximize efficacy while minimizing peripheral side effects. The financing will also support exploration of additional indications and progress across MapLight’s broader clinical and preclinical programs.
Kriya Therapeutics – Series D – $320M – September 2025
Kriya closed an oversubscribed $320 million series D co-led by Patient Square Capital and Premji Invest, with participation from Peter Thiel, Narya Capital, The T1D Fund, and others. The round, completed at an increased valuation, adds Premji Invest’s Akshay Rai to the Board. Proceeds will advance clinical trials of Kriya’s gene therapies across Geographic Atrophy, Thyroid Eye Disease, Type 1 Diabetes, MASH, and Trigeminal Neuralgia, while further leveraging its integrated R&D and manufacturing platform to drive scale, purity, and cost efficiency in gene therapy development.
Strive Health – Series D – $300M – September 2025
Strive Health raised $300 million in series D equity, led by NEA with participation from CVS Health Ventures, CapitalG, Echo Health Ventures, Town Hall Ventures, Redpoint, BlackRock affiliates, and others, alongside $250 million in debt financing from Hercules Capital. The round lifts Strive’s valuation to $1.8 billion and brings total funding to $700 million. The company now manages care for 145,000 kidney disease patients in partnership with 6,500 providers nationwide, overseeing $5 billion in annual medical spend. Proceeds will support AI investment and expansion of payer and provider collaborations.
Global Healthcare and Life Sciences IPO Activity
In Q3 2025, 6 healthcare and life sciences IPOs raised $800 million, topping Q2’s $300 million from 5 listings. Deal count and average proceeds per IPO increased, reflecting stronger deal quality. Across Q2 and Q3 2025, 11 IPOs generated $1.1 billion.
Top IPO Activity Global Healthcare and Life Sciences
Heartflow – IPO – $364.2M – August 2025
Heartflow (Nasdaq: HTFL), an AI leader in coronary artery disease diagnostics, priced its upsized IPO of 16.7 million shares at $19 each, for expected gross proceeds of $317 million. Underwriters hold a 30-day option to purchase up to 2.5 million additional shares. Trading is set to begin on August 8, 2025, with closing expected on August 11, subject to customary conditions. Heartflow is positioning itself as a leader in AI-enabled cardiovascular diagnostics by transforming coronary artery disease into a screenable, diagnosable, and manageable condition. Its flagship platform, Heartflow One, is the only comprehensive, non-invasive solution providing precision insights across the guideline-directed CCTA care pathway.
LB Pharmaceuticals – IPO – $285M – September 2025
LB Pharmaceuticals (Nasdaq: LBRX), a clinical-stage biopharma developing therapies for schizophrenia, bipolar depression, and other neuropsychiatric disorders, priced its upsized IPO at $15 per share for 19 million shares, raising expected gross proceeds of $285 million. Underwriters hold a 30-day option to purchase an additional 2.85 million shares. Trading is set to begin on the Nasdaq Global Market on September 11, 2025, with closing expected on September 12, 2025.
GenFleet Therapeutics – IPO – $234M – September 2025
GenFleet Therapeutics (HKEX: 2595), a Shanghai-based biopharma specializing in oncology and autoimmune therapies, raised HK$1.8 billion (US$234 million) in its Hong Kong Stock Exchange debut on September 19, 2025. Shares surged to HK$44 at the open and closed at HK$42.10, up 106% from the IPO price.
Also check out Healthcare and Life Sciences Quarterly Overview – Q2 2025
