Article
M&A Activity Rebounds at the End of 2023
IQVIA Pharma Deals
Mar 13, 2024

Mergers and acquisitions (M&A) in the biopharmaceutical sector experienced a notable resurgence in the fourth quarter of 2023, with an increase in both the overall deal value and volume of these transactions. Despite facing challenges such as macroeconomic factors and regulatory obstacles, biopharmaceutical companies actively pursued substantial M&A endeavors towards the end of 2023  with around 70% of these transactions carried out by big pharma companies and driven by novel, innovative therapies and technologies.


M&A volume and values on the rise

In the fourth quarter of 2023, the life science industry experienced a surge in M&A deals including several significant announcements from big pharma, reflecting the dynamic changes in the dealmaking landscape after a slow start in 2023. The primary objectives behind these transactions were to introduce innovative therapeutics to portfolios to tackle emerging medical challenges as well as address imminent expiration of patents for key products. 

The total number of biopharma M&A deals in Q4 2023 was up compared to previous quarters. According to the Pharma Deals database, there were 19% more transactions during this period as compared to Q3 2023. The aggregate total deal value for biopharma M&A deals signed in Q4 2023 reached an impressive $69.08 billion, up by 157% compared to the previous quarter. The average value of biopharma M&A deals in Q4 2023 was $706.2 million, a substantial increase from the previous quarters, underscoring the strategic importance attached to these transactions. Deals were focused on a diverse range of therapeutic areas and primarily targeted de-risked entities, emphasizing assets in Phase III or those already on the market. Oncology and immunology remained prominent as the key therapeutic areas. Notably, there was a significant presence of acquisitions focused on neuroscience, indicating a resurgence of interest in central nervous system (CNS) innovation. 

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