Pharmaceutical Industry Deals Hit Decade-Low in 2024: A Shift Towards Smaller Acquisitions

Pharmaceutical industry deals have hit a decade-low in 2024, with only 558 deals totalling USD 67.2 bn by late November - the lowest since 2016. The largest biotech purchase of 2024, Vertex's USD 4.9 bn acquisition of Alpine Immune Sciences, is dwarfed by Pfizer's USD 43 bn Seagen takeover in 2023.

The decline in major acquisitions can be attributed to several factors: pharma companies digesting previous large deals, high valuations of listed biotech's deterring potential buyers, a focus on smaller, "bolt-on" deals under USD 5 bn, and antitrust concerns and political uncertainty in an election year.

Despite these challenges, industry experts anticipate a potential rebound in 2025, with some cautious optimism surrounding the possibility of increased deal flow following the election, as well as the sector facing pressure to address an expected USD 59 bn loss in sales due to drug patent expirations by 2030.

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