Pharma Industry deal value drops 69% in October 2024

In October 2024, the pharmaceutical sector disclosed 102 transactions worth $8.9 billion, representing a 69 percent decrease in deal value relative to October 2023. GlobalData reports that this deal activity also did not meet the average from the previous 12 months (October 2023 to September 2024), during which there was an average of 97 deals valued at $17.5 billion.

Three major acquisitions accounted for 59 percent of the overall deal value in October 2024. H. Lundbeck A/S, a biopharmaceutical firm, declared the purchase of Longboard Pharmaceuticals, a clinical-stage biopharmaceutical enterprise, for roughly $2.6 billion. AbbVie announced its purchase of Aliada Therapeutics, a biotech company specializing in Central Nervous System (CNS) medication delivery issues, for $1.4 billion. Furthermore, Merck & Co. purchased Modifi Biosciences, a biotech firm, for approximately $1.3 billion.

Although the total deal value experienced a decline, venture capital (VC) funding demonstrated an increase. In October 2024, the healthcare sector recorded 114 VC transactions totaling $3.6 billion, representing a 55.7 percent increase compared to the same month last year and exceeding the 12-month average of 103 deals worth $2.6 billion.

Among the significant VC deals was Kailera Therapeutics, which secured $400 million in a series A funding round to develop treatments for obesity and associated conditions. Seaport Therapeutics secured $225 million in a series B funding round to advance its clinical-stage pipeline and improve its Glyph technology platform. Alpha 9 Theranostics secured $175 million in series C funding to advance its radiopharmaceutical pipeline.