Biopharma’s new blueprint: why partnering and M&A are mission-critical

In his latest column, Joseph Pategou discusses the pharmaceutical industry’s strategic transformation, exploring focused biopharma M&A and partnerships that are aligned to ensure sustainable growth and patient-centered advancements.

As the pharmaceutical industry enters a new era of complexity, capital intensity and competition, one truth has become clear: innovation alone isn’t enough. To stay ahead, top pharma players are reinventing their approach to growth and the centerpiece of that transformation is strategic partnering and M&A.

From blockbuster losses of exclusivity (LOEs) to pipeline setbacks, today’s biopharma landscape is forcing companies to act with greater urgency and precision. Rather than chase volume through mega-mergers, the new blueprint is focused, therapeutic-aligned and increasingly tailored to each company’s scientific edge and commercial vision.

Let’s unpack how this strategic shift is playing out across the industry and what it means for the future of drug development and commercialization.

From consumer roots to research engines

Sanofi (Paris, France) offers a textbook case of pivoting toward innovation. By divesting its consumer health division (Opella), Sanofi has repositioned itself as a research-first pharmaceutical powerhouse. The move has been backed by deep investments in immunology, neuroscience and oncology, with late-stage candidates like amlitelimab (OX40L mAb) and tolebrutinib (BTK inhibitor) anchoring its long-term pipeline vision [1].

AbbVie (IL, USA), navigating the twilight of Humira’s dominance, has found new momentum in Rinvoq and Skyrizi, which generated a combined US $17.6B in 2024. But its ambition doesn’t stop at immunology. Through next-generation antibody-drug conjugates (ADCs) like Temab-A and ABBV-706, AbbVie is carving a position in high-growth oncology niches.

GSK (London, UK), after mixed results in its vaccines and antibiotics units, is recalibrating toward respiratory, immunology and inflammation areas where it has a proven scientific legacy and strategic intent. It’s doing so not by chasing scale, but by focusing BD around its therapeutic core.

J&J (NJ, USA) is balancing internal innovation with smart external bets. Its US $14.6B acquisition of Intra-Cellular Therapies [3] has fortified a growing neuroscience franchise, while assets like icotrokinra (IL-23 inhibitor) and nipocalimab continue to reinforce its autoimmune and rare disease pipeline [2].

Novartis (Basel, Switzerland), meanwhile, is addressing the US $7.8B LOE hit from Entresto with targeted R&D bets. With programs like votoplam for Huntington’s and OAV101 for spinal muscular atrophy, the company is leaning into genetic and neurological innovation while maintaining a careful eye on capital discipline [4].

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Not all M&A is created equal

M&A isn’t just about expansion, it’s about strategic alignment. Companies like Sanofi, Merck (Darmstadt, UK), AbbVie, Novartis and Roche (Basel, Switzerland) are taking bold steps through transformative acquisitions. These “aggressive acquirers” are prioritizing late-stage, de-risked assets in areas like cardiometabolic disease, oncology, immunology and neuroscience.

Take Merck, for instance. While not the most prolific in volume, it executed high-impact deals like the US $10.8B Prometheus Biosciences acquisition to bolster its immunology pipeline. It also forged a US $2B global development partnership with Hengrui (Jiangsu, China) for an oral Lp(a) inhibitor — a strategic play in cardiovascular innovation [5].

Novartis has maintained a disciplined and focused M&A posture, favoring acquisitions in the US $1–3 billion range. Notable transactions include the US $3.1 billion acquisition of Anthos Therapeutics (Factor XI inhibitor) [6] and the US $3 billion acquisition of MorphoSys, signaling a preference for targeted, value-driven deals over megamergers [7].

On the flip side, GSK, Novo Nordisk (Copenhagen, Denmark) and Pfizer (NY, USA) are opting for a more disciplined, focused approach. These companies are concentrating on licensing, partnerships, and highly targeted M&A, often within their areas of historic strength. This suggests not only a preference for integration simplicity but also a deliberate avoidance of platform risk.

Across the board, the takeaway is clear: quality trumps quantity. Asset maturity, scientific differentiation and therapeutic fit now matter more than deal size. And for investors, that’s a welcome shift.

The strategic imperative

If there’s a single lesson from today’s biopharma landscape, it’s this: M&A and partnerships are no longer optional they are existential.

The winners won’t be those who spend the most, but those who:

• Invest with scientific clarity,
• Partner with strategic foresight, and
• Build resilient, patient-centered portfolios capable of thriving under regulatory, scientific and commercial scrutiny.

In this new paradigm, success belongs to the companies that can turn capital into cures — and do so with speed, focus, and conviction.

Disclaimer: the opinions expressed are solely that of the authors and do not express the views or opinions of their employers, Bioanalysis Zone or Taylor & Francis Group.

About the author:

Joseph Pategou has authored over 30 articles in esteemed journals such as Cell and Gene Therapy, The Indian Economist, Labotech.eu, Drug Discovery & Development and others. A former consultant at Boston Consulting Group (MA, USA) in New York, he has held and continues to hold operational roles in biopharma companies. The views expressed are his own. He holds an MBA from New York University (USA) and a master’s degree from HEC Paris (France). You can connect with and follow him on LinkedIn, Instagram, or Twitter.

Sources

1. Sanofi. Press Release: Sanofi and CD&R partner to fuel Opella’s ambitions in consumer healthcare. (2024): https://www.sanofi.com/en/media-room/press-releases/2024/2024-10-21-05-30-00-2965875
2. Johnson & Johnson. (2024): Johnson & Johnson seeks first icotrokinra U.S. FDA approval, aiming to revolutionize treatment paradigm for adults and adolescents with plaque psoriasis. https://www.jnj.com/media-center/press-releases/johnson-johnson-seeks-first-icotrokinra-u-s-fda-approval-aiming-to-revolutionize-treatment-paradigm-for-adults-and-adolescents-with-plaque-psoriasis
3. Associated Press. (2024): Johnson & Johnson acquires Intra-Cellular for $14.6B to bolster neuroscience portfolio. https://apnews.com/article/johnson-jnj-intracellular-schizophrenia-19160ba4559aaab40836078d12a89800
4. Novartis. (2024): Q4 2024 Investor Presentation. https://www.novartis.com/sites/novartis_com/files/q4-2024-investor-presentation.pdf
5. Reuters. (2025): Merck signs deal with Jiangsu Hengrui worth up to $2 billion to access heart drug. https://www.reuters.com/business/healthcare-pharmaceuticals/merck-signs-deal-with-jiangsu-hengrui-worth-up-2-billion-access-heart-drug-2025-03-25/
6. Anthos Therapeutics. (2025): Anthos announces acquisition by Novartis for $3.1 billion. https://anthostherapeutics.com/press-release/anthos_2025-02-11_release/
7. Fierce Biotech. (2024): Novartis’ $2.9B MorphoSys bet stumbles; safety signal delays filing by years. https://www.fiercebiotech.com/biotech/novartis-29b-morphosys-bet-stumbles-safety-signal-delays-filing-years