The global healthcare sector recorded a downturn in mergers and acquisitions (M&A) and venture capital (VC) investments in March 2025, according to the latest monthly analysis from GlobalData.
M&A activity in March 2025 comprised 85 deals totalling $7.6 billion, reflecting a 46.9 per cent decline in value compared to the same month in 2024. This also falls below the 12-month average (March 2024 to February 2025) of 98 deals worth $13.2 billion.
Three major transactions accounted for 53 per cent of the total M&A deal value during the month. Sanofi announced its acquisition of DR-0201, a bispecific myeloid cell engager (MCE) from Dren Bio, for approximately $1.9 billion. The candidate has demonstrated B-cell depletion in pre-clinical and early clinical studies.
Taiho Pharmaceutical disclosed plans to acquire Araris Biotech AG, a biotechnology company engaged in the development of next-generation antibody-drug conjugates, for approximately $1.14 billion. AstraZeneca also announced its acquisition of EsoBiotec, a firm developing in vivo cell therapies, for a consideration of $1 billion.
Venture capital activity in healthcare also saw a reduction in March 2025, with 85 VC deals valued at $2.4 billion. This marks a 21.4 per cent year-on-year (YoY) decline, compared to the 12-month average of 102 deals worth $2.9 billion.
The three largest VC transactions included Isomorphic Labs Ltd securing $600 million in its first external funding round to scale its AI-first drug design engine. Callio Therapeutics raised $187 million in Series A financing to advance its HER2-targeted dual-payload ADC and a second undisclosed ADC programme. Latigo Biotherapeutics Inc. closed a $150 million Series B round to support its clinical-stage pipeline of non-opioid pain therapies.
GlobalData’s findings underline a broader slowdown in healthcare sector dealmaking in early 2025, with strategic and financial investors focusing on selective asset deployment across both traditional and next-generation therapeutic platforms.