Big Pharma Has Spent Nearly $150 Billion On M&A (So Far) In 2025
The biotech industry has been abuzz with deal-making activity, with Merck’s recent acquisition of Cidara Therapeutics for $9.2 billion making headlines. The deal was driven by Cidara’s promising antiviral drug in late-stage clinical trials aimed at preventing flu infections in high-risk patients. This acquisition marks Merck’s second multi-billion dollar deal this year, following its purchase of Verona Pharma for respiratory drugs in July.
The flurry of biotech deal-making extends beyond Merck, with Pfizer’s $10 billion acquisition of Metsera and Johnson & Johnson’s $3 billion deal to buy Halda Therapeutics for cancer therapies. According to accounting firm EY, M&A activity in the biotech sector has already surpassed $129 billion this year, a 43% increase from the total in 2024. Despite a 26% decrease in the number of deals compared to last year, the average deal size has increased by 101%, reflecting a shift towards market-ready assets.
In other news, Recursion, a biotech company known for its use of AI in drug discovery, is facing challenges as it prepares for a leadership change. Despite CEO Chris Gibson’s initial promise to develop 100 drugs in 10 years using AI, the company has yet to bring a single drug to market. As Recursion’s shares plummet and losses mount, incoming CEO Najat Khan is determined to prove that AI drug development can be successful.
Meanwhile, a botulism outbreak linked to ByHeart’s organic infant formula has affected 23 babies across 13 states, leading to hospitalizations and lawsuits. ByHeart’s manufacturing plant was shut down earlier this year due to safety violations, prompting a nationwide recall of its infant formula. The outbreak has raised concerns about the regulation of infant formula and the safety of organic ingredients.
In a positive development, Profluent, a startup focused on using AI to design proteins, raised $106 million in new venture funding led by Jeff Bezos’s Bezos Expeditions and Altimeter Capital. The company’s AI models enable scientists to create custom proteins with specific properties, with potential applications in drug discovery and agriculture.
Overall, the biotech industry continues to see rapid innovation and deal-making activity, with companies navigating challenges and opportunities in a dynamic market landscape.
