Pharma mergers and acquisitions and venture capital investments hit $33.7 billion in January 2025.

In January 2025, the healthcare sector witnessed an impressive total of 107 mergers and acquisitions (M&A) deals valued at $29.2 billion. This figure surpassed the average of the previous 12 months, from January 2024 to December 2024, which stood at 99 deals worth $14 billion.

Leading the way in M&A activities was Johnson & Johnson’s acquisition of Intra-Cellular Therapies, a biopharmaceutical company, for a total equity value of around $14.6 billion. Eli Lilly and Co also made a significant move by acquiring Scorpion’s PI3Kα inhibitor program STX-478 for about $2.5 billion. Additionally, Gilead Sciences Inc sealed the deal to acquire LEO Pharma’s preclinical oral STAT6 small molecule inhibitors and targeted protein degraders for approximately $1.7 billion. Together, these three transactions accounted for a substantial 64% of the total M&A deal value for January 2025.

On the venture capital (VC) front, investments in the healthcare industry soared by 62.1% in January 2025 compared to the same period the previous year. A total of 129 VC deals amounting to $4.5 billion were recorded, marking a notable increase from the 12-month average of 103 deals equating to $2.8 billion.

Among the standout VC deals, Verdiva Bio Limited, a clinical-stage biopharmaceutical company focusing on issues related to obesity and cardiometabolic disorders, secured an impressive $410 million in series A financing. In a similar vein, Kardigan Inc, a company dedicated to improving heart health, obtained $300 million in series A funding with the goal of modernizing cardiovascular drug development. Furthermore, Aviceda Therapeutics Inc, a clinical-stage biotech company, raised $207.5 million in series C financing to move its lead program AVD-104 for geographic atrophy into pivotal trials.

The healthcare industry continues to be a hotbed of activity when it comes to M&A deals and VC investments. With key players like Johnson & Johnson, Eli Lilly and Co, and Gilead Sciences Inc making strategic acquisitions, and companies like Verdiva Bio Limited, Kardigan Inc, and Aviceda Therapeutics Inc raising substantial funds for their ventures, the sector shows no signs of slowing down in terms of growth and innovation.