A Look at Big Pharma's Shopping List: Selective Focus on Next-Gen ADCs and Immunology

More Than 50 Biopharma M&A Deals in the First Half of the Year
Large-Scale Transactions Focused on Immunology, Inflammatory Diseases, and Precision Oncology

Global pharmaceutical and biotech M&A funding is showing a clear trend of concentration in specific areas such as immunology and inflammatory diseases, rare diseases, and antibody-drug conjugates (ADC). Major pharmaceutical companies are not simply scaling up but are instead selectively acquiring external pipelines and platforms with proven commercial potential. This is interpreted as a targeted investment strategy to fill future revenue gaps ahead of impending patent cliffs.

According to the industry on July 8, the number of global biopharma M&A deals in the first half of this year exceeded 50, a significant increase compared to approximately 30 deals in the first half of last year. Even this month, major transactions continued, such as Vertex acquiring Crinetics, a rare endocrine disorder company, for USD 10 billion, and Novartis deciding to acquire UK ADC biotech Myricx Bio for up to USD 1.5 billion.

The sector seeing the most large-scale deals is immunology and inflammatory diseases. This market has a large patient population and strong demand for long-term medication, making it highly attractive commercially. Even after the patent expiry of Humira, subsequent immunology treatments such as Skyrizi, Rinvoq, and Dupixent have established themselves in major markets, ensuring that big pharma companies continue to invest in this area. Recent deals are focused on securing candidates that target the same diseases as existing therapies, but with improvements in dosing convenience, durability, and safety.

Last month, AbbVie announced it would acquire Apogee Therapeutics for USD 10.9 billion. Apogee is developing long-acting anti-interleukin (IL)-13 antibody candidates targeting atopic dermatitis and asthma. AbbVie has expanded Skyrizi and Rinvoq to continue its immunology business after Humira, and this acquisition adds a next-generation immunology pipeline. GSK's acquisition of allergy and immunology company RAPT for USD 2.2 billion earlier this year can also be seen as part of this trend.

Active deal flow is also seen in the smaller but well-defined markets of precision oncology and rare diseases. Although the total patient populations for cancers or rare diseases with specific gene mutations are limited, the clear diagnostic criteria and high unmet needs make it easier to design clinical trials and pricing strategies. GSK's recent acquisition of targeted lung cancer developer Nuvallent for USD 10.6 billion is an example of this trend. Nuvallent holds candidate therapies for ROS1-positive and ALK-positive non-small cell lung cancer.

Vertex, which has grown through its cystic fibrosis therapy, recently announced a USD 10 billion acquisition of Crinetics, a company specializing in rare endocrine disorders. Through this deal, Vertex will secure Palxonyfai, an FDA-approved once-daily oral therapy for acromegaly, as well as Atumelnant, a candidate for congenital adrenal hyperplasia. Vertex expects that Crinetics' assets will allow it to broaden its portfolio in rare endocrine disorders with significant unmet needs and create additional annual revenue opportunities exceeding USD 5 billion.

From a modality (treatment approach) perspective, competition to secure ADC-related technologies is becoming pronounced. Rather than simply acquiring ADC candidates, companies are also seeking to obtain linker and payload technologies that can overcome limitations such as resistance, toxicity, and drug release control. Novartis' acquisition of Myricx is a prime example. Myricx owns an ADC payload platform based on NMT inhibitors. In April, Gilead also announced plans to acquire German ADC company Tusbio for up to USD 5 billion. Tusbio has ADC candidates and linker-payload platforms targeting ovarian cancer and non-small cell lung cancer. Gilead has also revealed plans to make Munich, Germany an ADC research hub following the acquisition.

By company, Eli Lilly's activity has been the most prominent. According to industry tallies, Eli Lilly concluded nine company acquisitions and pipeline deals this year, investing a total of USD 23.3 billion. Gilead followed with about USD 15 billion, and GSK with approximately USD 13.8 billion.

This content was produced with the assistance of AI translation services.