Pharma Industry Reports Significant Q1 2025 Growth Amid Challenges

The biopharmaceutical sector saw a 101% surge in total M&A deal value in Q1 2025 compared to the previous quarter, reaching $37.7 billion, though this remains 32% lower than Q1 2024 due to hesitancy over large-scale transactions amid US political uncertainty. Leading deals included Johnson & Johnson’s acquisition of Intra-Cellular Therapies and Novartis’ purchase of Anthos Therapeutics, with oncology remaining the most targeted therapeutic area. Drugmakers are primarily pursuing smaller, bolt-on acquisitions as they navigate regulatory challenges and economic instability, highlighted by delayed FDA approvals and Trump’s proposed pharmaceutical tariffs. These conditions are expected to drive smaller biotech firms toward M&As as a strategic necessity. Industry participants are closely monitoring forthcoming US policies for greater clarity before engaging in larger deals.