Q4 2023's Biggest Mergers and Acquisitions Transforming the Healthcare and Pharmaceutical Landscape

The transforming landscape of the healthcare and pharmaceuticals industry witnessed a flurry of mergers and acquisitions in the fourth quarter of 2023. Streamlining operations, reducing costs along with delivering efficient and novel therapeutics to address evolving medical challenges has become a focal point for all the major collaborations in the industry.

Here are some of the biggest and most prominent mergers and acquisitions in the healthcare sector from the final quarter of 2023, likely to revolutionize the landscape of treatment and diagnosis in the industry.

Bristol Myers Squibb Acquires Karuna Therapeutics for a Whopping USD 14 billion

In December 2023, Bristol Myers Squibb and Boston-based Karuna Therapeutics entered a strategic partnership worth USD 14 billion. As per the terms of the agreement, Bristol acquired Karuna Therapeutics to leverage their lead asset, KarXT (xanomeline-trospium), an antipsychotic with the latest mechanism of action to treat schizophrenia in adults. The transaction is expected to close by the first half of 2024.

The deal strengthens Bristol Myers Squibb’s neuroscience portfolio especially with the help of KarXT, which has displayed positive effects on several neurological conditions, including Alzheimer and Bipolar disorder. The transaction is projected to be dilutive to Bristol Myers Squibb’s non-GAAP diluted earnings per share. However, the company aims to counteract by bringing efficiency in overall operations.

AbbVie Buys Cerevel Therapeutics to Strengthen Neuroscience Pipeline

December 2023 marked AbbVie’s another significant expansion, as it acquired Cerevel Therapeutics with a total equity value of approximately USD 8.7 billion. With the transction, AbbVie is set to buy all Cerevel outstanding shares at a cost of USD 45.00 per share in cash and close the deal in the middle of 2024. The deal is expected to add significant value to the company psychiatric and neuroscience portfolio.

The acquisition is centered around Cerevel's late-stage asset emraclidine, which is a potential next generation antipsychotic, useful for in treating schizophrenia patients. According to EMR estimates, the global schizophrenia drugs market is poised to grow at a CAGR of 5.4% during the forecast period of 2024-2032 and attain a value of 12.97 billion by 2032. Consequently, such acquisitions are set to fuel market growth significantly. Along with emraclidine, Cerevel has numerous assets advancing in clinical development, which can complement AbbVie's priority areas within neuroscience.

Sanofi and BioMap Collaborate to Develop AI Biologic Therapies

In October 2023, Sanofi partnered with BioMap to develop artificial intelligence modules for biologic therapies leveraging their artificial intelligence platform. Under the terms of the agreement, BioMap is set to receive an upfront payment of USD 10 million and the potential deal value can reach a value of over USD 1 billion.

Offering an edge over traditional artificial intelligence methods, BioMap’s foundational artificial intelligence models are anticipated to enable superior prediction from limited data in diverse therapeutic areas, including immunology, rare diseases, neurology, and oncology.

Bristol Myers Squibb Diversifies Oncology Portfolio with RayzeBio Acquisition

In December 2023, Bristol Myers Squibb and RayzeBio, Inc. entered a merger agreement, wherein Bristol Myers Squibb will acquire RayzeBio for a total equity value of around USD 4.1 billion or USD 3.6 billion net estimated cash. The agreement is aimed at acquiring RayzeBio’s actinium based radiopharmaceutical therapeutics. The recent pipeline programs target treating solid tumors like gastroenteropancreatic neuroendocrine tumors (GEP-NETs), small cell lung cancer, hepatocellular carcinoma, and others.

Currently, RayzeBio’s portfolio includes multiple programs such as RYZ101 for small cell lung cancer , RYZ801 for hepatocellular carcinoma and several first-in-class preclinical assets to treat solid tumors.

GSK and Zhifei Announce Vaccine Partnership in China

In October 2023, GSK plc unveiled an exclusive partnership with Chongqing Zhifei Biological Products, Ltd. (Zhifei) to co-promote Shingrix, GSK’s shingles vaccine in China for an initial three-year time span. As per the agreement, the strategic alliance will extend the availability of Shingrix supporting patient’s access to vaccines.

Under the terms of the deal, Zhifei will have exclusive right to import and distribute Shingrix in the region, starting January 1st, 2024. In August 2023, Shingrix got approved for treating shingles in Chinese adults aged 50 years or above.

Bristol Myers Squibb Buys Mirati Therapeutics in an Agreement Worth 4.8 Billion

In October 2023, Bristol Myers Squibb and Mirati Therapeutics agreed to enter a merger agreement, under which Bristol Myers Squibb will acquire Mirati for a total equity value of USD 4.8 billion. According to the agreement terms, the transaction is expected to occur for USD 58.00 per share in cash. The Mirati stockholders will also receive one non-tradeable Contingent Value Right (CVR) for each Mirati share held, representing an additional value of USD 1 billion. The Mirati portfolio presently includes KRAZATI (adagrasib) for non-small cell lung cancer along with MRTX1719, a potential first-in-class MTA-cooperative PRMT5 inhibitor in Phase 1 development for melanoma and bile duct cancer (cholangiocarcinoma).

AbbVie Expands Solid Tumor Portfolio with ImmunoGen Acquisition

In November 2023, AbbVie Inc., and Immunogen Inc., declared their recent merger according to which, AbbVie will acquire ImmunoGen for an equity value weighing up to USD 10.1 billion. The agreement also aims to incorporate ImmunoGen’s flagship cancer therapy ELAHERE® (mirvetuximab soravtansine-gynx), a first in class folate receptor alpha (FRα) antibody-drug conjugate (ADC) for platinum resistant ovarian cancer. The deal proposes a transaction at a share price of USD 31.26 in cash. The deal complements the oncology pipeline of AbbVie and their clinical presence in the solid tumor domain.

Eli Lilly and Company Completes POINT Biopharma Acquisition

In October 2023, Eli Lilly and Company and POINT Biopharma Global, Inc. entered a definitive agreement wherein Eli Lilly is set to acquire POINT to leverage their radioligand therapies for a value of USD 1.4 billion. Under the agreement, Lilly will initiate a tender to acquire POINT’s all outstanding shares at a price of USD 12.50 per share in cash. In December 2023, Eli also extended the expiration of tender offer to acquire all the issues and remaining shares of POINT Biopharma.

POINT has several lead programs under development with PNT2002, a prostate-specific membrane antigen (PSMA) targeted radioligand therapy for patients suffering from metastatic castration-resistant prostate cancer (mCRPC) post hormonal treatment progression. With the collaboration, Eli Lilly hopes to offer targeted and improved therapies to patients across the globe.

The continuous movement in the healthcare and pharmaceutical landscape is expected to bring some significant advancements in the treatment and diagnostics market, which is anticipated to address the unmet needs of patients across the world.