Foreign Investors Rethink US M&A Amid Tariffs, Policy Changes

The pharmaceutical M&A market is gaining momentum in 2025, driven by significant transactions such as J&J's $14.6 billion acquisition of Intra-Cellular Therapies and partnerships like Gilead Sciences' collaboration with Leo Pharma, despite a looming 'patent cliff' threatening over $300 billion in revenue losses due to patent expirations. Industry experts anticipate that the financial resources of leading pharmaceutical companies, estimated at $1.3 trillion, will propel further M&A activity this year. Additionally, a 'buy and build' strategy is emerging among management teams as they pivot from sales to acquisition modes, highlighting the importance of expert guidance and stakeholder communication during the integration process. Successful M&A requires a strategic focus on cultural fit and effective integration, as many deals fail not at closing but during integration. Meanwhile, cross-border M&A activity faces challenges from the new U.S. administration's policies, including tariffs and regulatory scrutiny, which may deter foreign investment. Investors must navigate these changes carefully to capitalize on potential opportunities within the U.S. market.