Pharma, Biotech Giants Ramp Up M&A in Q1 to Boost Pipelines

Mergers and acquisitions (M&A) in the pharma and biotech sector have accelerated notably year to date, building on a rebound in 2025.

A recent surge in dealmaking underscores the industry’s focus on portfolio expansion and continuous pipeline innovation, alongside a growing emphasis on AI-driven drug discovery. Oncology and immuno-oncology companies have always been at the top of acquisition targets. Major players are actively pursuing licensing agreements and collaborations around promising drugs and candidates to further strengthen and diversify their core portfolios.

Quick Take on Recent M&A Deals

Among the pharma giants, Eli Lilly LLY and Novartis NVS have been particularly active on the M&A front.

Eli Lilly recently announced that it will acquire Centessa Pharmaceuticals, a clinical-stage firm focused on orexin-based therapies for sleep and neurological disorders.

Centessa’s pipeline includes OX2R agonists targeting the sleep-wake cycle, led by cleminorexton, which has shown promising phase II results in narcolepsy and idiopathic hypersomnia.

Per the terms of the deal, Lilly will pay $38 per share in cash plus contingent value rights worth up to $9 per share, valuing the transaction at up to $7.8 billion. The deal is expected to be closed in the third quarter of 2026.

In February, LLY agreed to acquire Orna Therapeutics, a biotech focused on in vivo immune cell engineering using circular RNA technology.

Orna’s platform combines engineered circular RNA with lipid nanoparticles to enable the body to produce its own cell therapies, with lead candidate ORN-252 targeting autoimmune diseases via in vivo CAR-T.

The deal is valued at up to $2.4 billion, including upfront and milestone-based payments.

LLY recently acquired Ventyx Biosciences, a clinical-stage firm developing oral therapies for inflammatory diseases.

Ventyx’s pipeline includes small-molecule drugs such as NLRP3 inhibitors targeting chronic inflammation across cardiometabolic, neurodegenerative and autoimmune conditions.

Swiss pharma bigwig Novartis, too, has been on an acquisition spree. Last month, the Swiss drugmaker announced plans to acquire Excellergy Inc., strengthening its immunology pipeline with a focus on food allergies and other IgE-mediated conditions. The deal brings in EXL-111, a phase I, half-life–extended anti-IgE antibody.

Novartis is also set to acquire a pan-mutant–selective PI3Kα inhibitor program from Synnovation Therapeutics, led by SNV4818, currently in phase I/II development. The move aligns with its oncology strategy in HR+/HER2- breast cancer, where targeted therapies are gaining traction.

Earlier this year, Novartis acquired Avidity Biosciences, adding its antibody oligonucleotide conjugate (AOC) platform and three late-stage programs, further bolstering its neuromuscular pipeline.

Last month, Merck MRK also announced that it will acquire Terns Pharmaceuticals for $53 per share in cash, valuing the deal at about $6.7 billion. The acquisition strengthens Merck’s oncology and hematology portfolio, led by Terns’ key asset TERN-701, an oral BCR::ABL1 inhibitor in phase I/II studies for chronic myeloid leukemia.

The acquisition reflects a strategic push to strengthen its oncology pipeline and offset future patent pressures.

Among biotech giants, Gilead Sciences, Inc. GILD is ramping up its external innovation strategy through targeted acquisitions to strengthen its pipeline and reduce reliance on its core HIV franchise.

The recently announced acquisition of Ouro Medicines adds OM336 (gamgertamig), a clinical-stage bispecific T-cell engager, to its inflammation portfolio. The deal, valued at $1.675 billion upfront plus up to $500 million in milestones, highlights Gilead’s push into next-generation immunology and introduces a potentially differentiated “immune reset” approach.

Last month, Gilead also agreed to acquire Arcellx for about $7.8 billion, centered on anitocabtagene autoleucel (anito-cel), a late-stage CAR-T therapy for multiple myeloma with a potential U.S. decision by December 2026.

Strategically, the Arcellx deal gives Gilead full economic rights to anito-cel through its Kite Pharma unit, boosting long-term margins while adding the D-Domain platform to support future cell therapy innovation.

Another biotech giant Biogen BIIB announced the acquisition of Apellis Pharmaceuticals for $41 per share in cash, valuing the deal at about $5.6 billion, plus contingent payments tied to Syfovre sales.

The acquisition adds two commercialized drugs — Empaveli and Syfovre — boosting Biogen’s immunology and rare disease portfolio while expanding into nephrology.

The deal is expected to enhance near- and long-term growth, supported by $689 million in combined 2025 sales and projected mid-to-high teens growth through 2028, with earnings accretion beginning in 2027.

GSK acquired RAPT Therapeutics for about $2.2 billion, strengthening its immunology pipeline.

The deal added ozureprubart, a long-acting anti-IgE monoclonal antibody in phase IIb development for food allergies, with potential for less frequent dosing versus current therapies.

GSK gains global rights (excluding parts of Asia), with key clinical data expected in 2027 as the company advances the asset into late-stage development.

Road Ahead in 2026

Consolidation remains a key theme as companies seek to offset patent cliffs and diversify revenue streams. Acquisitions offer a faster, less risky route than in-house development, especially as innovation cycles shorten.

With strong cash reserves and increasing adoption of advanced technologies like AI, M&A activity is expected to remain robust through 2026. Smaller biotechs, often constrained by funding, will likely continue to be prime acquisition targets, further fueling deal momentum.

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