Article
M&A Deals Dwindle in Late 2024
IQVIA Pharma Deals
Feb 11, 2025

Merger and Acquisition (M&A) activity in the life sciences sector was muted in Q4 2024 as buyers showed preference for small, strategic transactions. The year came to a relatively quiet end, with only 79 M&A deals announced in Q4 2024, in contrast to the 102 deals announced in Q4 2023. Similarly, deal values were down compared to the same period last year, as companies switched their focus to early-stage, long-range assets that complemented their therapeutic focus areas.

M&A volume and values drop in Q4 2024

The number of M&A deals announced (defined here as Mergers, Business Acquisitions and Divestments, signed but not necessarily completed) was down by 23% in Q4 2024 compared to Q4 2023. Deal values similarly diminished, with the aggregate total value down by 81% in Q4 2024 compared to Q3 2024 (Table 1). However, it should be noted that only 27% of deals in Q4 2024 disclosed deal values compared to 51% of deals in Q4 2023. The mean total value of all M&A deals signed in Q4 2024 decreased by 53% while the median deal value, which removes the skewing effects of any outliers, decreased by 12% in Q4 2024 compared to Q4 2023.

Interestingly, only 7 M&A deals exceeded US$1 billion in value in Q4 2024, compared to 13 in Q4 2023. Of the top 10 M&A deals by total deal value, two deals in Q4 2024 involved a private equity firm, including the €2 billion majority stake in complex generic drug maker Synthon purchased by Goldman Sachs. In the biopharma sector, companies favored small, yet strategic acquisitions opposed to mega-mergers, implementing risk-mitigating deal structures such as milestone payments or Contingent Value Rights (CVRs).

In a contrast to previous quarters, M&A deals in Q4 2024 primarily focused on early-stage, innovative assets which kept deal values low, as companies aimed to replenish their pipelines within their key therapeutic areas. Despite oncology assets continuing to dominate the M&A dealmaking landscape, CNS and neuromuscular indications saw an uptick in Q4 2024, with technologies that offer ways to overcome challenges commonly faced with neurology drugs commanding the highest deal values.

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