Biopharma Deal Activity Shows Uptick in Q3 2025: Signs of Recovery and Emerging Trends

Global biopharma dealmaking in Q3 2025 saw an uptick, particularly in merger and acquisition (M&A) activity, which rose 64% in total deal value compared to the prior quarter12.

Licensing activity remained stable with deal values and transaction volumes near three-year highs, but there was a notable pivot back to earlier-stage assets (Discovery–Phase 1), reversing a previous focus on later-stage deals1.

A shift toward therapeutic diversification occurred, with non-oncology deals reaching a four-year high and an increase in metabolic/endocrine transactions, highlighted by Pfizer’s $4.9B upfront acquisition of Metsera (total deal value up to $7.3B) and Roche’s $3.5B buyout of 89bio12.

The top five biopharma acquisitions of 2025 were reshuffled in Q3, with sizable deals by Merck ($10B for Verona Pharma) and Genmab ($8B for Merus); Genmab’s Merus bid sparked market excitement, sending shares up 36%2.

Globally, China expanded its leadership in licensing deal value, achieving a three-year high and increasing its global share, while U.S. dealmaking skewed toward early-stage assets and European activity reset after Q2's surge, returning to more typical levels1.

Despite the volume gains, equity premiums compressed, suggesting buyers targeted companies facing financial stress or strategic headwinds1.

Twenty-one major deals were struck in Q3 versus 16 in Q2 and 15 in Q1, reflecting renewed confidence in high-value dealmaking as interest rates fell and larger pharma players sought to shore up revenues amid looming patent expirations2.

Sources:

1. https://www.locustwalk.com/2025-q3-report-global-trends-in-biopharma-transactions/

2. https://www.biospace.com/business/q3-saw-some-of-the-highest-value-biopharma-acquisitions-of-the-year-so-far