The 43rd Annual JP Morgan Healthcare Conference kicked off with multi-billion-dollar mergers and acquisitions (M&A) announcements from Johnson & Johnson, Eli Lilly, and GSK. These transactions signal a return in biopharmaceutical deal-making confidence following subdued activity in 2024, with industry experts predicting larger deals in 2025 driven by regulatory changes and pipeline refueling needs, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Pharma Intelligence Center Deals Database reveals that biopharmaceutical M&A witnessed a 47% decrease in total deal value in 2024 compared to 2023, with over 80% of M&A transactions valued at under $1 billion.
Alison Labya, Business Fundamentals Analyst at GlobalData, comments: “Interest rate cuts and potential antitrust deregulation following the departure of FTC Chair Lina Khan under the Trump administration could alleviate challenges hindering biopharmaceutical companies from signing larger deals, potentially spurring larger M&A deals in 2025.”
GlobalData’s recent State of the Biopharmaceutical Industry 2025 report reveals that 11% of surveyed healthcare industry professionals viewed mega M&A as a trend having the most positive impact on the biopharmaceutical industry.
Johnson & Johnson sparked optimism for a potential biopharmaceutical M&A recovery with the announcement of its $14.6 billion acquisition of Intra-Cellular Therapies, representing the largest biotech M&A since Pfizer’s $43 billion acquisition of Seagen completed in December 2023.
Through the acquisition, Johnson & Johnson will obtain Intra-Cellular Therapies’ extensive neurology portfolio, including Caplyta (lumateperone), which is marketed in the US for the treatment of bipolar disorders and schizophrenia, and is currently under FDA review for major depressive disorder. Caplyta is projected to achieve global sales of $3.1 billion in 2030, according to GlobalData’s Pharma Intelligence Center Drugs Database.
Meanwhile, Lilly announced plans to acquire Scorpion Therapeutics’ PI3Kα inhibitor STX-478 for $2.5 billion, with its non-PI3Kα drugs spun off into a new company. STX-478 is currently in Phase I trials for breast cancer and other advanced solid tumors.
Labya continues: “Lilly is placing its bets on PI3K inhibitors to challenge Novartis’ Piqray and Roche’s Itovebi in the breast cancer market, by positioning STX-478 as a best-in-class treatment due to its improved selectivity.”
In addition, GSK announced its $1.15 billion acquisition of US-based precision medicine company IDRx, expanding its oncology pipeline with IDRx’ oral KIT inhibitor IDRX-42, which is currently in Phase I trials for the treatment of gastrointestinal stromal tumors.
Labya concludes: “The flurry of M&A deals amid the JP Morgan Healthcare Conference signals a trend towards an M&A uptick in 2025, although investors remain wary over the impact of the incoming Trump administration on healthcare policy and FDA approvals. Nonetheless, a change in FTC leadership could foster a more favorable environment for larger M&A deals in 2025, conducive to the need to refuel pipelines and drive innovation ahead of upcoming patent expiries faced by large biopharmaceutical companies.”
