The life sciences sector witnessed a dynamic mergers and acquisitions (M&A) landscape in 2024, with a strong focus on specific therapeutic areas. This analysis takes a closer look at the data, highlighting trends across therapeutic areas and comparing 2024’s activity to 2023 performance.
Breakdown of Target Companies by Sector
The distribution of M&A deals across sectors in 2024 mirrored previous investment patterns with Biotech – Therapautics and Diagnostics continuing to dominate, accounting for 77% of the total deal value. This reinforces the industry’s strong focus on innovative drug development and advanced diagnostics, particularly as precision medicine and targeted therapies gain traction.
Meanwhile, Biotech – R&D services saw a significant increase, reaching 17% of market share, marking a 9% rise compared to 2023. This growth suggests a heightened emphasis on outsourced research and early-stage drug discovery. Based on the data gathered by Biotechgate, the Medical Technology sector comprised the remaining 5% of total deal value, a figure largely in line with 2023. While smaller in comparison, the medtech sector remains integral, particularly in areas such as AI-driven diagnostics and minimally invasive treatment technologies.
Despite the overall similarity in sector distribution compared to 2023 Biotechgate data, the surge in Biotech – R&D Services highlights a growing industry shift towards externalized innovation, where companies prioritize agility and cost-efficiency in drug development.
Comparison of M&As by Therapeutic Area: 2024 vs. 2023
The number of M&A deals across therapeutic areas in 2024 showed notable shifts compared to 2023, reflecting evolving industry priorities Oncology remained the dominant therapeutic area for acquisitions, maintaining its lead in both years, with a total of 25 M&A deals taking place in 2024, as companies continue to invest in cutting-edge cancer therapies, including immuno-oncology and targeted treatments. Continued interest in oncology in 2024 further solidified its overall prominence in the industry.
Meanwhile, Neurology (7) and Endocrinology (6) remained active areas for M&A in 2024, though both saw fewer deals compared to 2023. The decline in investment may reflect a more selective approach by acquirers, focusing on high-potential assets rather than broad acquisitions. Despite this shift, the persistent dominance of oncology transactions highlights the industry’s unwavering commitment to advancing cancer treatments and therapies, reinforcing its position as the primary driver of M&A activity in the life sciences sector.
Top M&As for Leading Indication Area (Oncology)
Oncology saw several high-profile acquisitions which solidified its position as the leading Indication area in the industry. These deals targeting late-stage and marketed assets underscored oncology’s continued dominance. The three largest deals in this space were:
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ImmunoGen acquired by AbbVie
Lead Asset Phase: On the market
Total Amount: 10.1 billion USD -
Mirati Therapeutics acquired by Bristol Myers Squibb
Lead Asset Phase: On the market
Total Amount: 5.8 billion USD -
RayzeBio acquired by Bristol Myers Squibb
Lead Asset Phase: Phase III
Total Amount: 4.1 billion USD