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M&A in biotech has slowed from its peak in 2023 but there are still deals to be done, especially for companies who can present good data, according to panelists at BIO 2025 in Boston.
Senior voices from Novartis, Centerview, Georgeson, Collective Strategies, and Mintz shared their thoughts on what’s moving the M&A market and what’s holding it back in a panel called “Biotech M&A 2025: What’s Driving Deal-Making in the New Environment.”
The drivers are clear. Big pharma needs innovation. Many biotech companies need partners. And in areas like oncology, obesity, and autoimmune disease, the pipeline of differentiated assets is attracting attention.
What’s changed
While 2023 was a record year for large M&A deals, the market cooled in 2024. By early 2025, values remained modest. Panelists said companies are turning to more flexible deal structures to navigate uncertain scenarios. Payment terms linked to future outcomes were noted as increasingly common tools to reduce initial risk and bridge valuation gaps.
“Data drives all transactions,” said Frank Fekete, Managing Director at Centerview. That core message was repeated throughout the panel and shaped the conversation. Along with having strong clinical data, it’s important to be able to communicate it clearly, panelists said.
Dealmaking continues
Regulatory complexity and policy uncertainty were among the challenges mentioned during the session, but panelists said these are not unsurmountable barriers.
“I just wanted to say something about 2025. For us, uncertainty is not what’s influencing how we approach deals,” said Janet Raimondo, JD, Global Head of Legal Transactions at Novartis. “We’ve already completed several, and we’ve maintained the same disciplined acquisition strategy. In the end, it’s all about the strength of the data. I think the second half will see a lot of deals, and while we continue to evaluate opportunities, we’re applying the same disciplined approach across the board.”
Panelists emphasized that creative deal structures are helping both sides manage uncertainty and keep innovation moving forward.
What it takes to get acquired
From the pharmaceutical company’s perspective, everything begins with the science and the data, and the goal is to always get life-changing medicines to patients as quickly as possible, said Novartis’s Raimondo.
But it’s not enough to develop a breakthrough. Panelists frequently stressed that biotechs need to communicate their work to potential partners.
Companies that can’t clearly articulate the value of their science will struggle to transact, panelists said. This is especially true in a competitive, investor-skeptical environment. “Everyone thinks they have the best data, but it won’t work if no one understands it,” Dan P. Moore, Founding Partner of Collected Strategies, noted.
Why it matters
Biotech M&A affects more than just financial outcomes, it plays a key role in determining which innovations ultimately reach patients. Panelists noted that pharmaceutical companies are actively looking for strong scientific assets to address emerging therapeutic needs, while many biotech firms continue to face funding constraints and seek strategic partners.
In this context, having persuasive data is not enough. Panelists emphasized that success depends on a company’s ability to present its data clearly, align with partner priorities, and stay flexible in a changing and competitive deal landscape.
Companies capable of communicating, adapting, and executing in this environment are the ones most likely to secure needed partnerships, panelists agreed.
