Mergers and acquisitions (M&A) activity across pharmaceutical and biotech sectors has accelerated significantly in 2026, extending the strong recovery that began in 2025.
A recent surge in dealmaking underscores the industry’s focus on portfolio expansion and continuous pipeline innovation, alongside a growing emphasis on AI-driven drug discovery. Oncology and immuno-oncology companies have always been at the top of acquisition targets. Major players are actively pursuing licensing agreements and collaborations around promising drugs and candidates to further strengthen and diversify their core portfolios.
Quick Take on Recent M&A Deals
Pharma conglomerate Johnson & Johnson recently announced that it will acquire Firefly Bio for $1 billion and gain access to its Firelink degrader antibody conjugate platform. The deal strengthens Johnson & Johnson’s oncology pipeline by adding a targeted approach for KRAS-driven cancers, supporting its efforts to develop treatments for some of the most common and challenging solid tumors.
Other pharma giants Eli Lilly LLY and Novartis NVS have been on an acquisition spree this year.
Lilly recently announced agreements to acquire Curevo, LimmaTech Biologics, and Vaccine Company, expanding its infectious disease research and development capabilities.
Lilly has been actively expanding its pipeline through acquisitions. LLY is all set to acquire Ajax Therapeutics, which will add AJ1-11095, a potential first-in-class oral type II JAK2 inhibitor currently in phase I testing for myelofibrosis patients previously treated with type I JAK2 inhibitors, to its pipeline. The company also announced a deal to acquire clinical-stage biotechnology company Kelonia Therapeutics, Inc, a pioneer in vivo gene delivery.
The company had earlier agreed to acquire Centessa Pharmaceuticals for up to $7.8 billion, which will add orexin-based sleep disorder candidate cleminorexton to its pipeline. Lilly also struck a deal worth up to $2.4 billion for Orna Therapeutics, to gain access to its circular RNA-based immune cell engineering platform. Lilly also acquired Ventyx Biosciences to strengthen its portfolio of oral therapies targeting inflammatory diseases.
Swiss pharma bigwig Novartis, too, has been very active on the M&A front. NVS is set to acquire Excellergy Inc., strengthening its immunology pipeline with a focus on food allergies and other IgE-mediated conditions. The deal brings in EXL-111, a phase I, half-life-extended anti-IgE antibody.
Earlier this year, Novartis acquired Avidity Biosciences, adding its antibody oligonucleotide conjugate (AOC) platform and three late-stage programs, further bolstering its neuromuscular pipeline.
Last month, Merck MRK acquired Terns Pharmaceuticals for $53 per share in cash. The deal adds TERN-701, a potential best-in-class treatment for chronic myeloid leukemia that recently received FDA Breakthrough Therapy Designation. The acquisition strengthens Merck’s oncology pipeline.
Among biotech giants, Gilead Sciences, Inc. GILD is ramping up its external innovation strategy through targeted acquisitions to strengthen its pipeline and reduce reliance on its core HIV franchise.
Gilead and partner Lakefront Biotherapeutics (formerly known as Galapagos) recently acquired Ouro Medicines, adding gamgertamig, a clinical-stage BCMAxCD3 T-cell engager, to strengthen their autoimmune disease and inflammation pipeline.
Last month, Gilead acquired Tubulis, a clinical-stage biotech focused on developing next-generation antibody-drug conjugates (ADCs), strengthening its oncology pipeline.
Earlier this year, GILD acquired Arcellx for about $7.8 billion. The acquisition gives Gilead full ownership of anito-cel, an investigational late-stage CAR-T therapy for multiple myeloma with a potential U.S. decision by December 2026.
Another biotech giant Biogen recently acquired Apellis Pharmaceuticals $41 per share in cash plus contingent value rights worth up to an additional $4 per share tied to future sales milestones. The acquisition adds two commercialized therapies, Empaveli and Syfovre, to Biogen’s portfolio. Together, the drugs generated $689 million in sales in 2025. The transaction strengthens Biogen’s presence in immunology and rare diseases while establishing a foothold in nephrology.
Earlier this week, GSK plc GSK announced that it will acquire clinical-stage biopharmaceutical company Nuvalent for $10.6 billion, gaining three lung cancer assets, including late-stage ROS1 inhibitor zidesamtinib and ALK inhibitor neladalkib, both under FDA review. The deal strengthens GSK’s oncology pipeline, expands its presence in lung cancer, and is expected to contribute to sales and operating profit growth beginning in 2027.
GSK earlier acquired RAPT Therapeutics to strengthen its immunology pipeline. The company also bought 35Pharma, adding HS235, a potential best-in-class therapy for pulmonary hypertension.
Last week, Servier (an independent international pharmaceutical group governed by a foundation) agreed to acquire the muscular dystrophy business of Edgewise Therapeutics in a deal worth up to $2.65 billion, including $1.55 billion upfront and up to $1.1 billion in milestone payments.
Road Ahead in 2026
Consolidation remains a key theme as companies seek to offset patent cliffs and diversify revenue streams. Acquisitions offer a faster, less risky route than in-house development, especially as innovation cycles shorten.
With strong cash reserves and increasing adoption of advanced technologies like AI, M&A activity is expected to remain robust through 2026. Smaller biotechs, often constrained by funding, will likely remain prime acquisition targets, further fueling deal momentum.
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