Approximately 20 high-value merger and acquisition (M&A) deals have been signed so far this year. Although the number is not as high as previous years, M&A activity is slowly bouncing back as larger companies continue to seek new bestsellers or ground-breaking technologies.
Perhaps the most notable M&A deal announcement this year was Pfizer’s proposed takeover of Seagen in March 2023 for an estimated $43 billion. This deal sparked particular interest because M&As of this size have not been seen in recent years. However, the deal—which would provide Pfizer with oncology-focused Seagen’s antibody–drug conjugate platform—is currently being reviewed by the US Federal Trade Commission and the European Union.
Beyond this potential mega-deal, the three highest-value M&A deals signed so far this year (see below) are between global pharma companies and smaller companies nurturing potential blockbuster drugs. The highest-value completed acquisition was Merck’s $10.8 billion buyout of precision medicine and diagnostics specialist Prometheus Biosciences—this deal was announced in April 2023 and was completed by June 2023. Through the pact, Merck (known as MSD outside of the United States and Canada) gained PRA023, an antibody that is in phase 2 development for inflammatory bowel diseases, and the Prometheus360 discovery engine platform.
In July 2023, Biogen announced its intention to acquire Reata Pharmaceuticals for $7.3 billion. Although the deal has not been completed yet, Biogen is hoping to net Reata’s Skyclarys (omaveloxolone), which was recently approved by the US Food and Drug Administration (FDA) for the inherited neurodegenerative disorder Friedreich’s ataxia, and is the only approved drug for this disease.
Astellas is betting on Iveric Bio, investing $5.9 billion in May 2023 to acquire the eye diseases-focused company. Iveric’s most advanced pipeline candidate is the aptamer-based drug avacincaptad pegol, a complement C5 protein inhibitor to treat geographic atrophy secondary to age-related macular degeneration. The drug was approved by the FDA in August.
Other recent notable M&A deals include Novartis’ $3.2 billion acquisition of rare kidney diseases specialist Chinook Therapeutics, which brings with it two late-stage candidates: atrasentan and zigakibart. Both therapies are in development to treat IgA nephropathy (IgAN), a rare, chronic kidney disease. Also investing further in rare diseases is Swedish Orphan Biovitrum (Sobi), which acquired CTI Biopharma for $1.7 billion in June 2023. CTI focuses on blood-related cancers and rare diseases and has developed Vonjo (pacritinib), a product indicated for myelofibrosis that was approved by the FDA in 2022.
