32 Pharma Deals in 2025 First Half Signal Industry Shift Amid Policy Uncertainty

The global biopharma sector navigated a challenging yet active first half of 2025, completing 32 mergers and acquisitions despite significant regulatory and geopolitical uncertainties. Major players like Eli Lilly, Sanofi, and Novartis returned to the deal table, with Eli Lilly’s $1.3 billion acquisition of Verve Therapeutics in June marking a mid-year surge in transaction enthusiasm. According to PwC’s mid-year outlook, the industry experienced a “cautiously optimistic” tone, with policy hurdles such as FDA leadership changes, the potential revival of “Most Favored Nation” drug pricing, and looming import tariffs creating headwinds.

Policy contradictions were evident as US pharma companies pledged billions toward domestic manufacturing while actively sourcing innovation from China. Notably, over one-third of the deals involved US firms acquiring assets from China, highlighting the global nature of biopharma innovation.

Smaller, targeted deals dominated the landscape, with the $14.7 billion Johnson & Johnson acquisition of Intra-Cellular Therapies being the only deal exceeding $10 billion. Most transactions ranged between $1 billion and $5 billion as companies recalibrated their strategies amidst valuation uncertainties. Eli Lilly led the pack with three deals, while Concentra Biosciences, backed by Tang Capital, emerged as the most active buyer, acquiring four distressed firms for a total of $463.1 million in a bid to consolidate underperforming assets.

Oncology remained the top focus area, accounting for eight transactions. According to Truist Securities, pharma firms preferred “mature targets” in oncology due to its predictable clinical and commercial pathways, in stark contrast to last year’s diverse therapeutic focus.

The first half also saw symbolic deals signaling the end of an era. BioNTech’s acquisition of CureVac resolved years of patent disputes, merging two German firms on opposite ends of the mRNA vaccine success spectrum. Meanwhile, Sage Therapeutics’ sale to Supernus Pharmaceuticals for up to $795 million highlighted the challenges faced by cash-strapped innovators. Bluebird bio, once a pioneer in gene therapy, was privatized for under $50 million after failing to achieve profitability.

Despite short-term challenges, industry experts remain optimistic. Robust cash reserves, expected drug approvals, and advances in gene editing and mRNA technology provide a foundation for continued deal activity. The second half of 2025 is likely to extend the “high-frequency, small-scale” transaction trend, with consolidations in oncology and distressed assets driving the sector forward.