White Paper
2025 Pharma Deals Annual Review
A leaner yet higher-value year for dealmaking
Mar 10, 2026

Despite persistent macroeconomic and geopolitical pressures, 2025 marked a pivotal shift in life sciences dealmaking: fewer transactions, but significantly higher deal values as companies prioritized quality, late stage assets, and strategic focus.

After an already subdued 2024, dealmaking activity across the life sciences sector declined further in 2025 as ongoing macroeconomic headwinds, market volatility, and regulatory uncertainty continued to temper risk appetite. The total number of publicly disclosed deals fell 12% year over year, reflecting a cautious environment for mergers and acquisitions, licensing, and collaborative R&D.

Yet beneath this slowdown, deal values surged. M&A spend nearly doubled as companies pursued fewer but higher impact transactions, with nine acquisitions exceeding US$10 billion. Licensing activity followed a similar pattern, with volumes down but fees holding firm as dealmakers concentrated on de risked, late stage assets aligned to core growth priorities. Meanwhile, collaborative R&D alliances reached a five year low as biopharma players narrowed their therapeutic focus and invested selectively in innovation.

Drawing on IQVIA’s comprehensive global Pharma Deals database, this annual review examines the key forces shaping deal activity in 2025, and what they signal for dealmaking strategies in the year ahead.


Key findings

  • Overall deal activity declined 12% year over year as persistent macroeconomic and geopolitical uncertainty continued to dampen life sciences dealmaking momentum.
  • M&A volumes fell 7% from 2024, reaching a five year low, yet aggregate M&A deal value surged, driven by nine transactions exceeding US$10 billion as companies pursued high value, strategically targeted acquisitions.
  • Licensing activity decreased 6%, but licensing fees remained resilient, reflecting a clear shift toward quality over quantity and sustained appetite for late stage, clinically validated assets.
  • Collaborative R&D alliances dropped 8%, reaching a five year low, as leading players narrowed their therapeutic focus and prioritized investments tied to core growth opportunities.

What you’ll learn

In this report, IQVIA experts explore:

  • How macroeconomic pressure reshaped deal structures and valuation dynamics in 2025
  • Why M&A value surged despite falling transaction volumes
  • The growing premium placed on late stage and de risked licensing assets
  • Shifts in therapeutic focus and geographic deal activity
  • What 2025 trends reveal about dealmaking priorities for 2026 and beyond

Download the 2025 Pharma Deals Annual Review

Gain data driven insight into global life sciences deal activity, valuations, and strategic trends, powered by IQVIA Pharma Deals, the industry’s most comprehensive source of publicly disclosed deal intelligence.

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