This year's global pharmaceutical and biotech mergers and acquisitions (M&A) market was marked by "larger transaction sizes" and "strategic asset acquisitions."
Amid growing uncertainty in the industry environment, including tariff, interest rate, and drug pricing policies, global corporations such as France's Sanofi, U.S. corporation Bristol Myers Squibb (BMS), and Pfizer drew attention as they pursued acquisitions worth trillions of won.
According to market research firm GlobalData on the 28th, cumulative M&A transaction value in the global pharmaceutical and biotech industry this year reached $179.6 billion (about 259 trillion won), up about 31% from the previous year ($137.1 billion). The figure is based on data compiled through the 15th, with final data to be released early next year.
Compared with the previous year, the number of transactions this year was similar, but total transaction value increased. In the first half, uncertainty surrounding U.S. tariff, interest rate, and drug pricing policies led to a contraction in the pharmaceutical M&A market. However, some noted that as global big pharma companies executed acquisitions in the second half, global M&A transactions have been gradually recovering.
◇ Big pharma fills patent cliff gaps with M&A firepower
Corporations pursuing multibillion-dollar acquisitions share a common task: reducing reliance on sales of existing products and finding growth engines after blockbuster drug patents expire.
A prime example is France's Sanofi. Sanofi announced three acquisition transactions in the second half alone. The combined value of the transactions is 18 trillion won.
On the 24th (local time), Sanofi said it would acquire U.S. vaccine corporation Dynavax Technologies for about $2.2 billion (about 3.14 trillion won). Through this transaction, Sanofi will secure Dynavax's already marketed adult hepatitis B vaccine as well as a shingles vaccine candidate in phase 1 and 2 trials.
Sanofi appears to be strengthening its adult vaccine portfolio and eyeing entry into the shingles vaccine market. Currently, commercialized shingles vaccines are limited to two: GSK plc's recombinant vaccine Shingrix and SK bioscience's Skyzoster.
In June and July, Sanofi said it would acquire U.S. biotech corporation Blueprint Medicines, which holds candidates for rare and immune disease treatments, for up to $9.5 billion (about 13 trillion won), and U.K. vaccine developer VaxBio for $1.5 billion (about 2 trillion won), respectively.
Patents for Sanofi's atopic dermatitis and asthma treatment Dupixent are set to expire in 2031, and the moves are seen as preparations for that. Dupixent's annual sales last year reached 13.072 billion euros (about 22 trillion won).
U.S. pharmaceutical corporation Abbvie in August signed a deal to acquire the depression treatment candidate program of mental illness drug developer Gilgamesh Pharmaceuticals for up to $1.2 billion (about 1.72 trillion won).
In October, BMS acquired cell therapy developer Orbital Therapeutics for $1.5 billion in cash (about 2.15 trillion won). U.S. patents for AbbVie's autoimmune disease treatment Humira expired in 2023, and key substance patents for BMS's anticoagulant Eliquis expired last year.
◇ Obesity and metabolic disease deals heat up
This year saw a surge in acquisitions in obesity and metabolic disease treatments. Pfizer of the United States and Denmark's Novo Nordisk competed to acquire U.S. biotech corporation Metsera, which is developing an oral obesity drug, with Pfizer prevailing. The transaction amount agreed by Pfizer and Metsera totals $10 billion (about 14.34 trillion won).
Pfizer has faced declining sales of COVID-19 vaccines and treatments, and is aiming to enter the obesity treatment market through the Metsera acquisition.
In October, Novo Nordisk said it would acquire Akero Therapeutics for up to $5.2 billion (about 7.46 trillion won).
Through this, Novo secured efruxifermin, a new drug candidate for metabolic dysfunction-associated steatohepatitis (MASH) that Akero is developing. MASH is a disease in which fat accumulates in the liver and inflammation and damage occur due to metabolic dysfunction, unrelated to alcohol consumption. With aging and rising obesity, the number of patients is increasing worldwide. Currently, the U.S. Food and Drug Administration (FDA) has approved only two MASH treatments, making it a field considered a blue ocean.
Global patents for semaglutide, the active ingredient in Novo's blockbuster obesity treatment Wegovy, will begin expiring next year in India, China, Canada, and elsewhere, and the company is ramping up efforts to secure strategic asset positions in preparation.
◇ K-bio moves to secure U.S. manufacturing bases
Korean corporations responded to U.S. tariffs on pharmaceuticals by purchasing U.S. drug manufacturing plants that came onto the M&A market.
Samsung Biologics said this month it signed a contract with GSK plc to acquire the Human Genome Sciences (HGS) biopharmaceutical manufacturing facility in Rockville, Maryland. The acquisition price is $280 million (about 414.7 billion won). According to the company, the facility is a 60,000-liter drug substance (DS) plant. Comprised of two manufacturing buildings, it has infrastructure to support antibody drug production at various scales from clinical to commercial.
Samsung Biologics had been cautious about acquiring or expanding overseas plants, but the acquisition is seen as reflecting U.S. tariff policy on pharmaceuticals and the passage of a "biosafety law" effectively aimed at curbing Chinese biotech corporations.
In September, Celltrion signed a deal with Eli Lilly and Company to acquire U.S. local manufacturing facilities worth about $330 million (460 billion won). Celltrion plans to invest a total of 1.4 trillion won, including 700 billion won for plant acquisition and operation and 700 billion won for expansion.
Industry observers said, "By securing production bases in the United States, they completely eliminated tariff risks." Others said, "Compared with the latest large-scale production facilities, the acquired sites are less competitive, making additional investment inevitable for expansion or modernization."
Some projected that the global pharmaceutical and biotech M&A market trend will continue next year much as it did this year.
Samil PwC said in a report, "In 2025, transactions focused on specific assets to fill pipeline gaps were predominant," and forecast, "M&A in 2026 will also center on securing innovative assets with clinical data and scientific differentiation, rather than increasing the number of transactions."
PwC added, "Flexible transaction structures such as minority equity investments or staged option frameworks will also expand," and expected, "If uncertainty in regulatory, interest rate, and trade environments eases, global pharmaceutical companies are more likely to actively use M&A again to reshape portfolios and execute growth strategies."