On February 11th, Novartis acquired Anthos Therapeutics for $925M representing just the 4th major transaction for 2025.
Lantheus Holdings acquired Evergreen Theragnostics for $250M
Johnson & Johnson acquired Intra-Cellular Therapies for $14.6B or $132/share
GSK acquired IDRx for $1B
YTD, there have been 13 biotech transactions totaling just under $2.5B vs. 27 transactions in 2024 representing just under $5B.
Despite the lack of transactions, there has been plenty of action in the space:
Bio-Techne (TECH) credited their strong revenue growth to improving biopharma demand as large pharma seems to be moving past a phase of reprioritization and slower purchasing habits. Further, companies like TECH that have less academic funding exposure may be better able to weather the many changes being implemented at the NIH and other government agencies by the new administration.
Springworks Therapeutics (SWTX) is in advanced acquisition discussions with Merck KGaA, which sent the stock soaring despite no legally binding agreement having been reached yet. SWTX also received FDA approval for their new treatment for Neurofibromatosis Type 1, a rare condition that leads to nerve sheath tumors affecting the skin, eyes, and nervous system. The new drug, now named Gomekli, is only the second therapy approved in this indication.
Axsome Therapeutics (AXSM) gained ground after patent litigation for its commercial product, Auvelity, was settled with a generic market entry date of 2038 at the earliest. This highlights the importance of intellectual property durability to biotechnology companies. Further, ITCI was acquired a few weeks ago after their patent litigation settlement, so investors likely assign more potential takeout value to AXSM following this event.
The National Comprehensive Cancer Network (NCCN) added circulating tumor DNA (ctDNA) testing for its prognostic value in determining risk of recurrence in colon and rectal cancers. This marks the first time ctDNA testing has been recognized for its predictive value and it aligns with growing popularity and broader use of ctDNA testing from companies like Natera (NTRA), Guardant Health (GH), and others.
STAAR Surgical Company (STAA) saw disappointing results from its EVO ICL franchise - an implantable collamer lens used for correction of myopia and astigmatism – as the consumer sentiment in China deteriorated in late 2024. China is the largest market for STAA and while the company has been able to gain share against other refractive procedures such as LASIK and SMILE, it was not enough to offset declines in overall volumes and highlights the tough economic backdrop that companies are experiencing in the region.
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