Pharma industry focuses on strategic investments amid reduced deal activity by 26.1 % compared to May 2023: GlobalData

Merck, Biogen, and Novartis lead major transactions

In May 2024, the pharmaceutical industry strategically pursued key acquisitions and significant venture capital investments amidst a reduction in overall deal activity, while the healthcare sector witnessed a decline in transactions.

Despite this drop, three major transactions accounted for 51 per cent of the total deal value in May. Merck & Co Inc announced its acquisition of Eyebiotech for USD 3 billion, aiming to advance therapies for eye diseases. Biogen’s acquisition of Human Immunology Biosciences for approximately USD 1.8 billion aimed to strengthen its offerings in immune-mediated, allergic, and inflammatory disease therapeutics. Meanwhile, Novartis AG’s acquisition of Mariana Oncology Inc for an estimated USD 1.7 billion represented a strategic expansion into novel radioligand therapies for cancer treatment.

Venture capital investments decreased by 8.3 per cent in May 2024, compared to May 2023, 97 VC deals worth USD 3 billion reported in May 2024, compared to the previous 12-month average of 110 deals worth USD 2.7 billion.

AltruBio, a clinical stage biotechnology company dedicated to the development of novel therapeutics for the treatment of immunological diseases, raising USD 225 million in series B financing to advance the clinical development of novel immune checkpoint enhancer program; Zenas BioPharma (USA) , a biopharmaceutical company, raising USD 200 million in series C financing to advance mid and late-stage immunology-focused clinical development programs; TheRas, BridgeBio Oncology Therapeutics, raising USD 200M in financing to accelerate the development of its novel precision oncology pipeline. These were the three major VC deals reported in May 2024.

These trends highlight the pharmaceutical industry’s focus on strategic investments and acquisitions despite the overall downturn in deal activity, while the healthcare sector grapples with a decline in transactions. Companies are leveraging targeted funding strategies to drive innovation and address critical healthcare needs amidst industry changes.