GlobalData reports a decrease in Pharma M&A and VC activity in March 2025

The healthcare sector observed a decline in both mergers and acquisitions (M&A) and venture capital (VC) investments in March 2025, as indicated by the most recent monthly analysis from GlobalData. M&A activity in March 2025 included 85 deals amounting to $7.6 billion, marking a substantial 46.9 percent decrease in value compared to the same period in 2024. This figure also fell below the 12-month average (from March 2024 to February 2025) of 98 deals worth $13.2 billion.

Notably, three significant transactions represented 53 percent of the total M&A deal value during the month. Sanofi’s acquisition of DR-0201, a bispecific myeloid cell engager (MCE) from Dren Bio, for around $1.9 billion stood out. This candidate has exhibited promising B-cell depletion outcomes in pre-clinical and early clinical studies. Furthermore, Taiho Pharmaceutical announced its plans to acquire Araris Biotech AG, a biotechnology company specializing in the development of next-generation antibody-drug conjugates, for approximately $1.14 billion. AstraZeneca also joined the fray by revealing its acquisition of EsoBiotec, a company focusing on in vivo cell therapies, for $1 billion.

In terms of venture capital activity, the healthcare sector witnessed a decline in March 2025, with 85 VC deals totaling $2.4 billion. This equates to a 21.4 percent year-on-year drop compared to the 12-month average of 102 deals worth $2.9 billion. Noteworthy among the three largest VC transactions was Isomorphic Labs Ltd securing $600 million in its initial external funding round to expand its AI-driven drug design engine. Callio Therapeutics also raised $187 million in Series A financing to advance its HER2-targeted dual-payload ADC and an undisclosed second ADC program. Additionally, Latigo Biotherapeutics Inc. wrapped up a $150 million Series B round to bolster its clinical-stage pipeline of non-opioid pain therapies.

GlobalData’s insights highlight a more widespread slowdown in healthcare sector dealmaking at the onset of 2025, with both strategic and financial investors directing their attention towards selective asset deployment across conventional as well as next-generation therapeutic platforms. This nuanced approach reflects the evolving landscape of the industry and the strategic recalibration of stakeholders within it.