Merck announced last week that it would acquire biotech Cidara Therapeutics for about $9.2 billion. The primary reason: Cidara’s antiviral drug to prevent flu infections among patients with a high risk of complications, currently in late-stage clinical trials. The deal is Merck’s second multi-billion dollar acquisition following its $10 billion agreement to buy Verona Pharma for its respiratory drugs in July.
The Merck deals are just the latest sign of this year’s biotech deal frenzy. This month alone has seen Pfizer’s $10 billion acquisition of Metsera after a bidding war for its weight-loss drugs with Novo Nordisk and Johnson & Johnson’s $3 billion agreement to buy Halda Therapeutics for its cancer therapies.
The dollar volume of M&A (through October 31) hit $129 billion, 43% more than in all of 2024, according to accounting firm EY. Intriguingly, the industry hit that with just 67 deals–26% fewer deals than in 2024, because the average deal size in 2025, at $1.9 billion, is up 101% over last year. Part of the reason, the accounting firm told Forbes, is that this year’s deals reflect “a pivot to market-ready assets.”
