Top 10 Potential Acquisition Targets in 2025 – Genetic Engineering and Biotechnology Industry
During the COVID-19 pandemic, the biopharma sector experienced a surge in merger and acquisition (M&A) activities driven by the urgent need for vaccines and treatments. However, recent data indicates a shift in M&A trends in the industry. According to EY, there was a 17% increase in biopharma deals in 2024 compared to the previous year. Despite the higher number of transactions, the average dollar value of these deals dropped by 51%, with most buyers focusing on smaller acquisitions under $5 billion that aligned with their existing therapeutic areas.
The largest M&A deal in 2024 was Vertex Pharmaceuticals’ acquisition of Alpine Immune Sciences for $4.9 billion, a significant decrease from previous years. Subin Baral, EY’s global life sciences deals leader, projects a rise in M&A activities in 2025 as biopharma companies seek to offset revenue losses from expiring blockbuster drug patents. Deloitte forecasts a revenue loss of $300 billion in the biopharma sector by 2030 due to patent expirations, prompting companies to pursue strategic acquisitions to maintain growth.
Some of the patented blockbuster drugs facing expiration include Xarelto®, Jardiance®, and Farxiga®, all vital treatments for various conditions including type 2 diabetes and heart disease. The anticipation of increased M&A activity in 2025 is also influenced by a stabilizing economy and the transition to the second administration of Donald Trump, expected to be less restrictive towards business transactions.
Market analysts have identified several biopharma companies as potential takeover targets for 2025 based on recent trends and market indicators. These companies have shown promising developments in their pipelines, making them attractive to potential buyers. Previous GEN A-Lists of takeover targets have seen successful acquisitions, highlighting the relevance of these predictions in the biotech M&A landscape.
One of the companies in the spotlight is Arcellx (NASDAQ: ACLX), known for its innovative CAR-T therapy for multiple myeloma. Positive trial results have reignited speculation about the company being an acquisition target, with analysts considering its therapy as best-in-class in the market. BioMarin Pharmaceutical (NASDAQ: BMRN) has also drawn attention due to its CEO’s strategic restructuring efforts aimed at maximizing the commercial potential of pipeline candidates and existing products.
As the biopharma industry adapts to evolving market dynamics and patent expirations, M&A activities are expected to play a crucial role in shaping the future landscape of the sector. Potential takeover targets represent opportunities for growth and innovation as companies navigate through changing regulatory environments and market demands. The forecast for increased M&A activities in 2025 underscores the industry’s resilience and adaptability in the face of challenges, showcasing a promising outlook for the biopharma sector in the coming years.