Trends, Insights, and Strategic Implications

The first quarter of 2025 marked a dynamic start to the year for the biopharma sector, continuing momentum from 2024’s wave of transformative transactions. Mergers and acquisitions (M&A), strategic licensing agreements, and novel collaborations were driven by three core themes: expansion in oncology, growing investment in immunology and neurology, and a sharp rise in NewCos and AI-enabled platforms. Radiopharmaceuticals remained a strong pillar of oncology strategy, while autoimmune diseases and gene-editing technologies gained new relevance. Q1 also featured a resurgence in cardiometabolic innovation, continued activity in strategic manufacturing and portfolio streamlining, and a series of late-quarter deals underscoring the sector’s agility. Mid-cap acquisitions and early-stage partnerships signaled strategic pipeline diversification among major players.

The first quarter of 2025 builds upon the momentum and strategic realignments observed throughout 2024, as outlined in Key Biopharma Deals of 2024 (Chatellier, December 2024).
Last year’s wave of high-value M&A, radiopharmaceutical growth, and rare disease focus set the tone for a more targeted, innovation-driven deal landscape. In Q1 2025, companies continued to adapt to economic pressures and regulatory headwinds by doubling down on differentiated science, precision partnerships, and global pipeline diversification. At the same time, operational efficiency and capital allocation became increasingly important, as evidenced by strategic manufacturing moves, portfolio divestitures, and focused investments in cardiometabolic diseases.

This article highlights the key transactions of early 2025 and explores how they reflect and evolve the industry’s strategic imperatives established in 2024.

Oncology Remains the Crown Jewel
Oncology continued to attract the highest concentration of dealmaking in Q1. Key transactions included:

• Genmab’s $1.8B acquisition of ProfoundBio, bringing in three clinical-stage antibody-drug conjugates (ADCs), including lead candidate rinatabart sesutecan (Rina-S), targeting solid tumors and offering synergy with Genmab’s proprietary antibody platforms.
• Bristol Myers Squibb’s $4.1B acquisition of RayzeBio, focused on RYZ101, a radiopharmaceutical targeting SSTR2-expressing neuroendocrine tumors, currently in Phase III, bolstering BMS’s presence in targeted radiotherapeutics.
• Pfizer’s $1.5B collaboration with Triana Biomedicines, focused on Molecular Glue Degraders (MGDs) to modulate traditionally “undruggable” protein targets in cancer and immunology, reinforcing Pfizer’s bet on protein homeostasis.
• Merck & Co. and Daiichi Sankyo launched a $22B co-development deal for three HERtargeting ADCs, each in late-stage development, aimed at expanding Merck’s oncology portfolio beyond checkpoint inhibitors.
• Roche’s licensing deal with MediLink Therapeutics (upfront $50M) secured access to novel linker technologies and ADC candidates, supporting Roche’s next-gen oncology pipeline.
• GV20 Therapeutics and Mitsubishi Tanabe Pharma initiated a strategic collaboration combining GV20’s AI-powered STEAD platform and novel tumor antigen targets with Mitsubishi’s ADC development capabilities, aiming to deliver first-in-class ADCs in oncology.
• Bayer’s global licensing agreement with Puhe BioPharma, targeting MTAP-deleted tumors through a selective PRMT5 inhibitor in Phase I, reflects a growing interest in synthetic lethality and targeted oncology approaches.

These deals reflect intense competition in targeted therapies, platform-based ADCs, and differentiated radiotherapeutics.

Radiopharmaceuticals Accelerate Oncology Innovation
Major pharma players doubled down on radiolabeled therapies:

• BMS acquired RayzeBio for $4.1B, marking its first major push into radiopharmaceuticals.
• Novartis finalized a $1.75B acquisition of Mariana Oncology, expanding its RLT (radioligand therapy) capabilities.
• Sanofi invested $300M in OranoMed, acquiring a minority stake in its actinium-225 platform for alpha-emitting therapies.
• Bayer’s in-licensing of Puhe BioPharma’s PRMT5 program also adds to its broader oncology strategy, complementing targeted radiotherapies with molecular precision assets.

These moves signal radiotherapeutics as a rising pillar in precision oncology pipelines.

Neurology Surges with High-Value Bets
Neurological disorders continued to see high investor interest:

• Bristol Myers Squibb’s $14B acquisition of Karuna Therapeutics centered on KarXT, a Phase III asset for schizophrenia that offers a non-dopaminergic mechanism of action and potential for broader neuropsychiatric indications.
• Novartis entered a $3.9B licensing deal with PTC Therapeutics for PTC518, an oral splicing modulator in Phase II for Huntington’s disease, with potential CNS franchise expansion.
• Biogen partnered with Neomorph to co-develop MGDs for neurodegenerative disorders such as Alzheimer’s, tapping into Neomorph’s small-molecule degradation engine with milestone potential of $1.45B.
• Roche’s collaboration with Ascidian Therapeutics brought in RNA exon editing technology for neurological diseases, supporting a precision medicine approach to complex splicing disorders.

This surge reflects pharma’s confidence in novel modalities for chronic CNS conditions with high unmet need and long treatment durations.

Immunology and Autoimmune Diseases Expand Their Footprint
Q1 saw a diverse set of transactions targeting inflammatory and immune-mediated diseases:

• Biogen’s $1.8B acquisition of Human Immunology Biosciences (HI-Bio) brought felzartamab, an anti-CD38 antibody for IgA nephropathy and other rare immune indications, complementing Biogen’s nephrology and immunology strategy.
• Johnson & Johnson’s $850M acquisition of Proteologix added bispecific antibody platforms aimed at diseases like lupus and psoriasis, enhancing J&J’s pipeline in chronic immunoinflammatory conditions.
• AbbVie’s >$2B partnership with FutureGen Biopharma provided rights to FG-M701, a monoclonal antibody for inflammatory bowel disease with a differentiated mechanism targeting epithelial repair.
• GSK and CureVac’s $1.57B expansion of their mRNA alliance aims to develop next-generation immunotherapies for autoimmune diseases, leveraging CureVac’s optimized mRNA constructs.
• Bristol Myers Squibb and Repertoire Immune Medicines partnered in a $1.8B deal to develop tolerizing vaccines, an emerging approach to re-educate the immune system in autoimmune diseases.

Immunology remains a key area of pipeline renewal, where bispecific antibodies, mRNA, and tolerizing
platforms offer next-gen therapeutic potential.

Rare Diseases Capture Premium Deal Values
Rare disease assets remained top targets due to their regulatory incentives and market exclusivity:

• Gilead’s $4.3B acquisition of CymaBay Therapeutics delivered seladelpar, an oral PPARδ agonist in Phase III for primary biliary cholangitis, with potential for first-in-class status.
• Sanofi acquired Inhibrx for up to $2.2B, securing INBRX-101, an Fc-fusion protein designed for sustained Alpha-1 Antitrypsin levels with monthly dosing potential.
• Arrowhead and Sarepta’s $10B partnership focuses on RNAi-based treatments for rare muscular and CNS diseases, combining Sarepta’s neuromuscular expertise with Arrowhead’s TRiM platform.
• Eli Lilly’s licensing of QRL-204 from QurAlis adds an antisense program for ALS linked to UNC13A variants, reflecting pharma’s appetite for genetically defined rare CNS targets.

These deals reinforce the rare disease segment as a durable and high-value investment category.

AI and MGDs Shape Platform Collaborations
Platform-based innovation continued to command high-value partnerships:

• Recursion’s $688M acquisition of Exscientia added AI-driven lead optimization and target discovery capabilities to Recursion’s phenomics platform.
• AI Proteins and BMS launched a $400M partnership to develop miniprotein therapeutics, showcasing the convergence of computational biology and synthetic design.
• Takeda and Degron Therapeutics initiated a $1.2B MGD deal across oncology, neuroscience, and immunology.
• GV20 and Mitsubishi Tanabe joined forces to leverage AI-discovered antigens for novel ADC development, combining AI-native drug discovery with precision engineering.

These collaborations reinforce pharma’s pursuit of AI-native and degrader-enabled innovation engines.

Biotech Consolidation Reflects Portfolio Synergies
Consolidation among small and mid-sized biotechs remained a strategic lever:

• Century Therapeutics acquired Clade Therapeutics for $45M, strengthening its iPSC-derived cell therapy pipeline.
• NLS Pharmaceutics and Kadimastem merged to combine CNS and stem cell therapy assets, aiming for a public listing.
• InmageneBio was formed through the merger of Ikena Oncology and Inmagene Biopharmaceuticals, backed by $85M, to pursue dual-acting agents for cancer and autoimmunity.

These moves aim to weather funding headwinds while accelerating development through combined expertise.

NewCos and Out-Licensing Continue to Globalize Innovation
The rise of NewCos continued, especially in Asia:

• Hengrui’s $6.03B licensing deal to Hercules CM NewCo transferred global GLP-1 rights and ensured long-term royalties plus equity retention.
• Novo Nordisk’s early-stage licensing from United Laboratories adds to this trend, leveraging Chinese-origin innovation in cardiometabolic disease.
• ChinaBio Innovations and BioValley Therapeutics raised $1.5B to license and co-develop assets globally, with oncology and CNS as primary areas.

These structures enable geographic monetization while limiting development risk, an increasingly popular model for cross-border innovation.

Strategic Manufacturing and Portfolio Streamlining
As the biopharma industry navigates increased cost pressures, complex global supply chains, and the need for scalability, Q1 2025 saw continued activity around operational streamlining, capacity optimization, and non-core asset divestitures.

• Novo Nordisk’s $11B acquisition of three Catalent sites, finalized in early Q1 2025, expanded its manufacturing capacity to meet growing demand for GLP-1 therapies. The move reflects a broader push for in-house production to improve quality control and scale globally.
• Sanofi’s €16B deal with Clayton Dubilier & Rice, transferring majority control of its consumer health unit (Opella), took effect this quarter. This allows Sanofi to streamline operations and focus on prescription drugs and vaccines, while freeing up capital for R&D.
• Eisai sold the China rights to Pariet® (rabeprazole) to Beijing Peak Biology Pharmaceuticals reflects a similar trend. The deal lets Eisai exit a non-core market segment, while Peak Pharma, backed by CBC Group, takes over commercialization of the mature brand in China.

These moves highlight how companies are using manufacturing investments and asset divestitures to align with long-term priorities. While doubling down on innovation, they’re also unlocking value from non-core products. Scalable infrastructure, especially for biologics, remains key to meeting global demand. Ultimately, operational agility and capital efficiency are proving just as vital as scientific breakthroughs in staying competitive.

Others (Metabolic and Cardiovascular Diseases)
While oncology, immunology, and neurology dominated deal volume in Q1 2025, two key licensing transactions underscored growing momentum in cardiometabolic innovation:

• Merck’s exclusive license for HRS-5346 from Hengrui Pharmaceuticals, a Phase II oral Lipoprotein(a) inhibitor, adds a differentiated cardiometabolic asset to Merck’s growing nononcology portfolio. Elevated Lp(a) levels are a recognized independent risk factor for cardiovascular disease, and few therapeutic options currently exist. This deal positions Merckat the forefront of a potentially game-changing therapeutic class.
• Novo Nordisk and The United Laboratories’ licensing agreement for UBT251, a GLP1/GIP/glucagon triple receptor agonist in early-stage clinical development for obesity and type 2 diabetes, reinforces Novo’s leadership in metabolic diseases. The asset’s triple-agonist mechanism aims to enhance weight loss and glycemic control beyond current standards of care. The deal also exemplifies the continuing trend of China-Western biotech partnerships, as United Biotechnology joins a growing list of Chinese firms leveraging global licensing to scale innovation.

These transactions highlight a sustained push into next-generation metabolic and cardiovascular therapies, therapeutic areas expected to command increasing investment and clinical differentiation over the next decade.

Q1 2025 confirmed the biopharma industry’s unwavering commitment to focused innovation, risk balanced dealmaking, and global partnerships. Oncology remained a dominant investment theme, particularly through ADCs and radiopharmaceuticals, while neurology and immunology at tracted meaningful capital through both acquisitions and partnerships. AI, MGDs, and exon editing are shaping the discovery landscape, and rare diseases remain a strategic anchor for value capture. Equally notable were renewed investments in cardiometabolic therapies and a series of operational moves, ranging from divestitures to manufacturing expansions, that reinforced the importance of scalability, focus, and execution. As biotech valuations stabilize and capital re-enters the market, we anticipate continued momentum in licensing, mid-cap acquisitions, and collaborative R&D, especially as major players look to shore up pipelines ahead of patent expirations. Strategic agility and therapeutic specialization will remain the cornerstones of success in this rapidly evolving landscape.

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Author: Dr. Jean Chatellier, PhD
Partner, EVP & Managing Director
KYBORA
Email: jean@kybora.com