Pharma M&A Hits Record Pace with Merck, Eli Lilly and Biogen Leading Charge

Key Points

• Merck acquiring Terns Pharmaceuticals for $6.7 billion
• Eli Lilly acquiring Centessa Pharmaceuticals for $6.3 billion
• Biogen acquiring Apellis Pharmaceuticals for $5.6 billion
• Additional activity from Gilead, Novartis, and Servier in $1-3B range
• Analysts predict more deals from Amgen, AbbVie, and Bristol Myers Squibb

Full Details

A flurry of pharmaceutical M&A activity over the past week has galvanized the biopharma sector, with three major deals announced totaling over $18 billion. Merck agreed to acquire Terns Pharmaceuticals for $6.7 billion, Eli Lilly secured Centessa Pharmaceuticals for $6.3 billion, and Biogen finalized its $5.6 billion purchase of Apellis Pharmaceuticals. Beyond these headline-grabbing transactions, pharmas including Gilead, Novartis, and Servier have been active in the $1-3 billion range, scooping up smaller biotech targets. According to analysts at BMO, additional major players such as Amgen, AbbVie, and Bristol Myers Squibb could extend the current streak of deal-making. While Gilead, Merck, and Lilly may conduct more deals, they are expected to be more selective in finding the perfect strategic fit. The pharmaceutical sector's M&A momentum suggests the industry is in the midst of a sustained consolidation phase.