Biotech Industry Trends in 2024: A Look at the Billions in Oncology Deals

In the global biotech sector, oncology has been a key focus of research and development (R&D) deals. Recent years have seen over $200 billion in transactions within this field, with $100 billion occurring in 2022 alone. Despite a peak in deal volume during 2020 and 2021, high-value transactions continue to emerge. However, market activity in 2024 shows signs of leveling off compared to previous years.

Record-Setting Deals in 2023-2024: ADCs Hot on the Market

From July 2023 to July 2024, the top ten oncology deals each exceeded $1 billion, according to a report released in Nature. The most notable deal took place in October 2023. Daiichi Sankyo of Japan and Merck & Co. of the U.S. signed a landmark $22 billion agreement. This deal focuses on three antibody-drug conjugates (ADCs): Patritumab Deruxtecan (HER3-DXd), Ifinatamab Deruxtecan (I-DXd), and Raludotatug Deruxtecan (R-DXd), targeting multiple solid tumors. Under this agreement, Daiichi Sankyo will receive $4 billion upfront for supply and manufacturing, while Merck & Co. will cover 75% of the first $2 billion in R&D costs, with the remainder shared equally.

Another significant transaction occurred in December 2023, involving a $8.4 billion deal between Bristol Myers Squibb (BMS) and SystImmune. This deal centers on the bispecific ADC BL-B01D1, targeting epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 3 (HER3) for lung and breast cancer treatment. BMS will handle development and commercialization outside China, while SystImmune will focus on the Chinese market.

Oncology Partnerships: Protein Degradation Technology, ADCs, Molecular Glues, Bispecific Antibodies and Peptide Platforms

Recent high-value oncology R&D partnerships underscore a significant surge in investment and innovation. Major pharmaceutical companies are prioritizing ADC technology, with deals often surpassing $2 billion. Notably, Nurix Therapeutics and Seagen entered a $3.46 billion agreement in September 2023 to develop cancer therapies using Nurix’s targeted protein degradation technology combined with Seagen’s antibody-drug conjugate (ADC) technology. Similarly, Monte Rosa Therapeutics and Roche signed a $3.08 billion deal in October 2023, focusing on molecular glue degrader therapies for cancer and neurological diseases. These partnerships illustrate a growing trend toward utilizing advanced technologies in oncology research.

Furthermore, Dren Bio and Novartis finalized a $3 billion deal in July 2024 to develop bispecific antibodies for cancer, with Novartis handling all further development and commercialization. Additionally, PeptiDream and Novartis signed a $2.89 billion agreement in April 2024, expanding their previous partnership to include peptide-drug conjugates. These agreements highlight a strategic move toward leveraging peptide discovery platforms and bispecific antibody technologies to tackle complex cancer targets.

Moreover, several other significant collaborations have emerged. Nanobiotix and Johnson & Johnson Innovative Medicine signed a $2.76 billion deal in July 2023 to develop a radio enhancer for solid tumors. Similarly, C4 Therapeutics and Merck & Co. agreed on a $2.5 billion partnership in December 2023 to create small molecule Degrader-Antibody Conjugates. Meanwhile, Cellectis and AstraZeneca established a $2.45 billion collaboration for cell and gene therapies, and Moma Therapeutics and Roche secured a $2.07 billion deal in January 2024 for therapies using MOMA’s KnowledgeBase platform.

High-Value Cross-Disciplinary Collaborations Increase

Despite a slight decline in transaction numbers in 2024, high-value and interdisciplinary collaborations are on the rise, especially in oncology. This trend reflects a growing willingness among major pharmaceutical companies to invest early for breakthrough treatments. Notable companies involved include Merck & Co., Novartis, and Roche. Approximately 70% of these deals are in the platform or discovery stage, indicating a willingness to invest early for potential breakthroughs. These high-value transactions not only strengthen strategic positions in oncology but also enhance future cancer treatment prospects. Moreover, the affiliated technologies show promise not only for cancer treatment but also for improving current therapies.

Looking ahead, successful oncology R&D will increasingly depend on interdisciplinary collaboration. Biotech firms must partner with clinical research institutions, AI-assisted drug development platforms, and other specialized fields to maximize cancer treatment success. Moreover, with the rise of precision medicine, personalized treatment approaches are becoming more common. This shift demands integration of extensive genetic data, biomarkers, and clinical data. As data analysis techniques advance, future cancer therapies will likely achieve unprecedented efficacy.

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Author

Bernice Lottering