The latest insights on M&A activity in life sciences commercial vendors
As part of our quarterly pharmaceutical industry review, we’re pleased to share an update on merger and acquisition activity to help our clients understand the market dynamics impacting pharmaceutical manufacturers, service providers, and their supplier relationships.
Key M&A highlights in Q3 2025
✓ Q3 maintained exceptionally strong momentum across the pharmaceutical value chain with multiple billion-dollar transactions spanning manufacturers, CDMOs, and service providers. We identified significant acquisitions demonstrating continued confidence in the sector despite broader economic uncertainties and evolving regulatory landscapes.
✓ Obesity and metabolic therapeutics command premium valuations as companies scramble to establish positions in the rapidly growing GLP-1 market. Pfizer’s $4.9 billion acquisition of Metsera, with potential total value reaching $7.3 billion, highlights the strategic importance of next-generation obesity treatments across the industry.
✓ Respiratory therapeutics emerge as a major investment focus with two landmark acquisitions totaling $19.5 billion. Merck’s $10 billion purchase of Verona Pharma for COPD treatment Ohtuvayre and Sanofi’s up to $9.5 billion acquisition of Blueprint Medicines demonstrate the strategic value of specialized therapeutic platforms in high-need disease areas.
✓ Private equity firms drive consolidation in both pharmaceutical manufacturing and services, with major transactions including GTCR’s $4.8 billion acquisition of generic manufacturer Zentiva reflecting attractive growth dynamics across the sector.
✓ Strategic manufacturing partnerships evolve beyond traditional models as companies seek guaranteed capacity. Johnson & Johnson’s $2 billion, 10-year commitment to Fujifilm Biotechnologies demonstrates the evolution of pharmaceutical manufacturing relationships in response to supply chain and policy pressures.
✓ Service providers consolidate to enhance capabilities as vendors seek to expand their offerings and geographic reach. Strategic partnerships and acquisitions in consulting, technology, and clinical services reflect the evolving needs of pharmaceutical manufacturers.
✓ Geographic expansion and supply chain considerations continue to influence deal-making, with companies establishing presence in multiple regions to address policy changes including the BIOSECURE Act and evolving international trade relationships.
2025 Q3 Activity highlights
In the third quarter of 2025, pharmaceutical industry M&A activity showed exceptionally robust momentum with major transactions identified in the markets we monitor for our clients. The following significant deals were announced or completed:
1. Merck sets plants to acquire Verona Pharma for $10 billion (July 2025)
Merck announced on July 9, 2025 a definitive agreement to acquire Verona Pharma plc, a UK-based biopharmaceutical company focused on respiratory diseases, for $107 per American Depository Share (ADS) for a total transaction value of approximately $10 billion. The transaction closed on October 7, 2025.
Through this acquisition, Merck added Ohtuvayre® (ensifentrine), a first-in-class selective dual inhibitor of phosphodiesterase 3 and 4 (PDE3 and PDE4), to its growing cardio-pulmonary pipeline and portfolio. The U.S. Food and Drug Administration approved Ohtuvayre in June 2024 for the maintenance treatment of chronic obstructive pulmonary disease (COPD) in adult patients. Ohtuvayre combines bronchodilator and non-steroidal anti-inflammatory effects in a single molecule.
This acquisition represents Merck’s largest deal of 2025 and aligns with its strategy to diversify revenue sources ahead of Keytruda’s patent expirations beginning in 2028. The deal follows Merck’s pattern of striking major transactions every other year, including the $11.5 billion purchase of Acceleron in 2021 (which brought Winrevair for pulmonary arterial hypertension) and the $10.8 billion acquisition of Prometheus Biosciences in 2023.
2. Sanofi completes acquisition of Blueprint Medicines for up to $9.5 billion (July 2025)
Sanofi completed on July 18, 2025 its acquisition of Blueprint Medicines Corporation, a Cambridge, Massachusetts-based biopharmaceutical company specializing in systemic mastocytosis (SM) and other KIT-driven diseases. The deal was announced on June 2, 2025. Sanofi offered $129 per share in cash plus one contingent value right (CVR) worth up to $6 per share, for a total potential transaction value of up to $9.5 billion.
The acquisition includes Ayvakit/Ayvakyt (avapritinib), the only approved medicine for advanced and indolent systemic mastocytosis (ASM & ISM), which is characterized by the accumulation and activation of aberrant mast cells in bone marrow, skin, the gastrointestinal tract, and other organs. Ayvakit achieved net revenues of $479 million in 2024, growing more than 60% year-over-year.
The acquisition also includes a promising pipeline: elenestinib, a next-generation KIT D816V inhibitor currently in Phase 2/3 trials for SM; and BLU-808, an investigational oral wild-type KIT inhibitor with potential applications across multiple inflammatory diseases. Blueprint’s established presence among allergists, dermatologists, and immunologists is expected to enhance Sanofi’s ability to advance its growing immunology pipeline.
3. Pfizer acquires Metsera for up to $7.3 billion (September 2025)
Pfizer Inc. announced on September 22, 2025 its acquisition of Metsera, Inc., a clinical-stage biopharmaceutical company developing next-generation medicines for obesity and cardiometabolic diseases. The deal carries an enterprise value of approximately $4.9 billion, with Pfizer paying $47.50 per share in cash—a 43% premium to Metsera’s previous closing price.
The agreement includes contingent value rights potentially worth an additional $22.50 per share: $5 per share for initiating Phase 3 trials of the MET-097i+MET-233i combination, $7 per share for FDA approval of monthly MET-097i monotherapy, and $10.50 per share for combination therapy approval. Metsera brings a portfolio of differentiated oral and injectable incretin and non-incretin candidates with potential best-in-class profiles.
This acquisition marks Pfizer’s strategic re-entry into the high-growth obesity therapeutics market after internal development setbacks, providing multiple clinical-stage programs including MET-097i, a GLP-1 receptor agonist being developed as both weekly and monthly injectable formulations. The transaction exemplifies how pharmaceutical companies are willing to pay significant premiums for late-stage assets in high-value therapeutic areas.
4. GTCR to acquire Zentiva from Advent for $4.8 billion (September 2025)
Private equity firm GTCR agreed on September 11, 2025 to acquire Zentiva Group AS, a leading European generic pharmaceutical manufacturer, from Advent International in a transaction valued at approximately $4.8 billion. The deal is expected to close in early 2026 subject to customary regulatory approvals.
Zentiva employs over 5,000 people, operates four manufacturing sites across Europe, and develops and manufactures over 500 products in 900 drug forms, serving patients across more than 30 countries. Since Advent acquired it from Sanofi in 2018, the company has more than doubled its revenue and EBITDA through organic growth and strategic acquisitions.
GTCR’s acquisition, backed by approximately €3.6 billion in debt financing from major Wall Street banks and private credit lenders, reflects continued private equity interest in the generic pharmaceutical sector’s stable demand and strong cash-generating characteristics. The firm plans to support Zentiva’s continued growth through product innovation and strategic acquisitions, demonstrating how financial sponsors are creating value through operational improvements and consolidation.
5. Johnson & Johnson’s $2 billion Fujifilm manufacturing partnership (August 2025)
While structured as a long-term partnership rather than traditional acquisition, J&J’s $2 billion, 10-year commitment announced August 21, 2025 to Fujifilm Biotechnologies represents a significant strategic transaction. The partnership includes J&J establishing a 160,000+ square-foot dedicated manufacturing facility at Fujifilm’s new Holly Springs, North Carolina site.
This arrangement demonstrates the evolution of pharmaceutical manufacturing relationships beyond traditional fee-for-service models. The investment provides J&J with guaranteed biologics manufacturing capacity while leveraging Fujifilm’s expertise, reflecting how companies are securing strategic manufacturing capabilities through innovative partnership structures rather than outright acquisitions. The deal is part of J&J’s broader $55 billion commitment to U.S. manufacturing, research and development, and technology investments over four years, driven in part by the Trump administration’s tariff policies and the One Big Beautiful Bill Act signed into law in July 2025.