The Boldest Business Matchmaking of 2024: A Look at the Top M&A Activity

The biotech market, which had been sluggish since 2022, gained momentum in 2024 as global big pharma companies spearheaded bold mergers and acquisitions (M&A). These strategic initiatives focused on acquiring cutting-edge technologies, promising drug candidates, and state-of-the-art manufacturing facilities. By doing so, they strengthened supply chains and unlocked access to niche markets. Here’s a look at the top game-changing M&A deals that shaped the industry in 2024.

Focus on Diabetes, Obesity, Cardiovascular, Autoimmune, Rare Diseases, Oncology, and Ophthalmology

1. Novo Holdings Acquires Catalent for $16.5 Billion to Resolve Manufacturing Bottlenecks

Novo Holdings made headlines in February 2024 with its $16.5 billion acquisition of Catalent, targeting solutions for manufacturing challenges in diabetes and obesity treatments. The deal, valued at $63.50 per share, closed by the end of the year.

As part of the acquisition strategy, Novo sold three fill-finish plants located in Italy, the U.S., and Belgium, while ramping up production capacity for Novo Nordisk’s Wegovy (semaglutide). By late 2024, Wegovy moved from critical shortages to “Available” status on the FDA’s drug shortage list. Coupled with Novo’s $30 billion investment in production facilities, including a major expansion in North Carolina, the acquisition strengthened the company’s ability to meet long-term demand and stabilize supply chains.

2. Johnson & Johnson Acquires Shockwave Medical for $13.1 Billion, Expands Cardiovascular Portfolio

In 2024, Johnson & Johnson acquired Shockwave Medical for $13.1 billion, one of the largest M&A deals of the year. This acquisition strengthened Johnson & Johnson’s cardiovascular portfolio, focusing on treating calcified cardiovascular disease. Shockwave Medical, known for its innovative intravascular lithotripsy (IVL) technology, offers a unique solution for treating calcified coronary and peripheral arteries.

Furthermore, Shockwave is expected to become the thirteenth priority platform for Johnson & Johnson MedTech, with projected annual sales exceeding $1 billion. This deal is set to drive revenue growth for both Johnson & Johnson and its MedTech division. Although the acquisition will enhance operating margins, financing costs may reduce adjusted earnings per share by about $0.10 in 2024 and $0.17 in 2025.

3. Vertex Acquires Alpine Immune Sciences for $4.9 Billion to Boost Autoimmune Pipeline

Then, in April 2024, Vertex took a bold step to expand its autoimmune pipeline by acquiring Alpine Immune Sciences in a $4.9 billion deal. The acquisition centered on ALPN-303, a promising dual antagonist targeting BAFF and APRIL pathways, with potential applications in rare kidney disorders and other autoimmune diseases.

Marking its largest acquisition yet, Vertex demonstrated a strategic shift from relying solely on internal R&D. With over $4.3 billion invested in research and development in 2024, the company reinforced its commitment to advancing innovative treatments.

4. Gilead Acquires CymaBay for $4.3 Billion, Enters Rare Disease Market with PBC Treatment

Moving on, Gilead entered the rare disease market in February 2024 with its $4.3 billion acquisition of CymaBay Therapeutics. Central to the deal was seladelpar, an FDA-approved treatment for primary biliary cholangitis (PBC), now marketed as LIVDELZI.

The drug, offering Orphan Drug Designation and market exclusivity, provided new hope for PBC patients unresponsive to standard treatments. Backed by strong Phase 3 RESPONSE study results, this acquisition underscored Gilead’s strategic focus on expanding into specialized markets.

5. Eli Lilly Acquires Morphic for $3.2 Billion to Advance Oral IBD Treatments

As for a renowned pharma giant, in July 2024, Eli Lilly made a strategic move by acquiring Morphic Holding for $3.2 billion, including an 87.2% premium over Morphic’s 30-day average stock price. At $57 per share, the acquisition closed in August, positioning Lilly to transform the inflammatory bowel disease (IBD) market.

The acquisition centered on MORF-057, Morphic’s lead pipeline candidate, designed to inhibit integrin α4β7 and block inflammatory white blood cells from entering the gut. Unlike Takeda’s ENTYVIO, a dominant IV-administered therapy targeting the same pathway, MORF-057 offers the convenience of an oral formulation. Currently in Phase 2 trials for ulcerative colitis and Crohn’s disease, the drug promises to reshape treatment paradigms for IBD, which includes conditions like persistent diarrhea and bloody stools.

Lilly’s significant investment, equivalent to over $4 trillion KRW, reflected its confidence in MORF-057’s potential to revolutionize a market long dominated by injectables and to address critical unmet patient needs.

6. Merck Acquires Eyebiotech for $3 Billion, Reenters Ophthalmology with EYE103

In May 2024, Merck reentered the ophthalmology arena by acquiring Eyebiotech for $3 billion. The acquisition focused on EYE103, a promising therapy targeting neovascular age-related macular degeneration (NVAMD) and diabetic macular edema (DME).

While vascular endothelial growth factor (VEGF) inhibitors have been the standard DME treatment, many patients experience suboptimal or incomplete responses. Merck aimed to address this gap with EYE103, which targets the Wnt/β-catenin signaling pathway to inhibit abnormal blood vessel growth and reduce vascular leakage.

By September, Merck advanced EYE103 into a Phase 2b/3 clinical trial for DME, signaling its commitment to developing innovative solutions for unmet needs in ophthalmology.

7. Roche Acquires Carmot Therapeutics for $2.7 Billion, Expands Focus on Metabolic Diseases

Roche acquired Carmot Therapeutics for $2.7 billion, emphasizing its focus on metabolic diseases. This acquisition added Carmot’s clinical-stage drug candidates to Roche’s pipeline. The candidates target obesity and diabetes, addressing the rising prevalence of metabolic disorders. This move aligns with Roche’s strategy to expand its presence in the metabolic disease treatment market. It potentially offers new therapeutic options for patients with these conditions.

8. Ono Pharmaceutical Acquired Deciphera Pharmaceuticals for $2.4 Billion, Expanding Oncology Portfolio

10. Genmab Acquired ProfoundBio for $1.8 Billion, Strengthening Cancer Pipeline

Genmab’s $1.8 billion acquisition of ProfoundBio bolstered its cancer pipeline with next-generation antibody-drug conjugates (ADCs). This included Rina-S, a clinical-stage, FRα-targeted, Topo1 ADC for ovarian cancer and other FRα-expressing solid tumors. Rina-S, which was in a Phase 1/2 trial, demonstrated potential to address a broader patient population compared to first-generation ADCs. In January 2024, the FDA granted Fast Track designation for Rina-S in platinum-resistant ovarian cancer. The acquisition also provided Genmab with access to ProfoundBio’s novel ADC technology platforms, complementing its own proprietary technologies.

ProfoundBio’s innovative technology platforms offered Genmab valuable resources to develop new and potentially more effective cancer treatments, reinforcing its position in the oncology market.

Other Strategic Acquisitions Targeting Alzheimer’s, Cancer, Rare Diseases, and Immunology in 2024

It is evident that in 2024, several significant M&A deals shaped the industry. Other notable activity includes AbbVie that acquired Aliada Therapeutics for $1.4 billion to enhance its Alzheimer’s focus. Merck bought Modifi Biosciences for $1.3 billion to access small molecules for difficult cancers. Biogen acquired HI-Bio for $1.8 billion to add the immunology asset felzartamab to its pipeline. AstraZeneca purchased Amolyt Pharma for $1.05 billion to strengthen its rare disease portfolio. BioNTech acquired Biotheus for $0.95 billion, gaining global rights to a bispecific antibody. GSK acquired Aiolos Bio for $1.4 billion to expand its respiratory biologics portfolio. Lyell Immunopharma bought ImmPACT Bio for $0.0675 billion to strengthen its clinical pipeline. Roche acquired Poseida Therapeutics for $1.5 billion, gaining access to cell therapies and genetic medicines for cancer and rare diseases.

Essentially, the M&A activity in 2024 shapes a rapidly evolving industry. Companies emphasize innovation, strategic pipeline expansions, and market consolidation, all of which influence the future of biotechnology and pharmaceuticals. Stakeholders will closely monitor the impact of these deals on drug pricing, patient access, and industry dynamics. Meanwhile, AI’s potential to revolutionize drug discovery and development will likely continue to transform the sector.

Author

Bernice Lottering