Pharma sector sees drop in deal value amid october 2024 activity: GlobalData report

In October 2024, the healthcare industry reported 102 deals valued at $8.9 billion, marking a 69 per cent decline in deal value compared to October 2023. According to GlobalData, this deal activity also fell short of the average over the past 12 months (October 2023 to September 2024), which recorded an average of 97 deals worth $17.5 billion.

Three significant acquisitions contributed to 59 per cent of the total deal value in October 2024. H. Lundbeck A/S, a biopharmaceutical company, announced the acquisition of Longboard Pharmaceuticals, a clinical-stage biopharmaceutical company, for approximately $2.6 billion. AbbVie disclosed its acquisition of Aliada Therapeutics, a biotechnology firm focused on Central Nervous System (CNS) drug delivery challenges, for $1.4 billion. Additionally, Merck & Co. acquired Modifi Biosciences, a biotechnology company, for about $1.3 billion.

While overall deal value saw a decrease, venture capital (VC) investments showed growth. The healthcare industry reported 114 VC deals worth $3.6 billion in October 2024, up 55.7 per cent from the same month last year and above the previous 12-month average of 103 deals valued at $2.6 billion.

Among the notable VC transactions were Kailera Therapeutics, which raised $400 million in a series A financing round to advance therapies for obesity and related conditions. Seaport Therapeutics raised $225 million in a series B round to support its clinical-stage pipeline and enhance its Glyph technology platform. Alpha 9 Theranostics raised $175 million in series C funding to progress its radiopharmaceutical pipeline.

The October 2024 data reflects varied investment priorities within the pharmaceuticals and biotechnology sectors, with strategic acquisitions and a rise in venture capital investments focused on advancing innovative treatments and technologies.