hanibaram/E+ via Getty Images M&A dealmaking in the pharmaceutical and biotechnology industry is increasing, based on the number of agreements announced in Q1 compared to the year-ago period. A new report from GlobalData found that deals valued at $1B or higher were 71% higher in Q1 compared to Q1 2023. The total value of those deals in Q1 was $43.
5B. The huge increase was helped by Novo Nordisk ( NVO ) investment company Novo Holdings' $16.5B acquisition of Catalent ( CTLT ) in February, which was done in large part to boost the Danish pharma's manufacturing capabilities.
The second highest M&A deal in the quarter was Gilead Sciences' ( NASDAQ: GILD ) $4.3B acquisition of CymaBay Therapeutics, which closed in March . Gilead gained the asset seladelpar, which is in phase 3 for the liver disease primary biliary cholangitis.
GlobalData Business Fundamentals Analyst Alison Labya noted that the M&A uptick "signals a return in dealmaking confidence, as big pharma companies also look to mitigate the challenges such as the Inflation Reduction Act and upcoming patent expirations." Johnson & Johnson's ( NYSE: JNJ ) $2B acquisition of Ambrx Biopharma in March gave the healthcare giant a stronger footing in antibody drug conjugates, while also in March, AstraZeneca ( NASDAQ: AZN ) also paid $2B to buy radiopharmaceutical company Fusion Pharmaceuticals ( FUSN ). The GlobalData report found that at $29B, deals involving oncology companies were the top therapy area for M&A in the quarter.
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