Biotech deal activity surges in year-end 2025 window

The final week of 2025 and opening days of 2026 delivered over $15 billion in announced and closed transactions across the biotech and healthcare spectrum. Royalty Pharma completed its $300 million acquisition of remaining Evrysdi royalties on December 29, while several major M&A transactions closed during this holiday period, including J&J's $3.05 billion Halda Therapeutics acquisition, Genmab's $8 billion Merus takeover, and Sanofi's $2.2 billion Dynavax deal. The week also saw Insilico Medicine's landmark Hong Kong IPO raising $293 million—the first AI-driven biotech to list on HKEX's main board. Meanwhile, the challenging funding environment claimed several early-stage casualties, with multiple ATP-backed biotechs entering bankruptcy protection.

Mergers & Acquisitions

Major acquisitions and divestitures announced or closed this week totaled over $13.5 billion in aggregate value, with big pharma continuing its aggressive pursuit of next-generation oncology platforms and vaccine assets.

Johnson & Johnson completes $3.05 billion Halda acquisition, gaining HLD-0915

Johnson & Johnson finalized its acquisition of Halda Therapeutics on December 29, 2025, for $3.05 billion in cash, gaining the proprietary RIPTAC™ platform (Regulated Induced Proximity Targeting Chimera) and lead candidate HLD-0915 for metastatic castration-resistant prostate cancer (mCRPC).

HLD-0915 clinical profile and mechanism

HLD-0915 is a bifunctional small molecule targeting both Androgen Receptor (AR) and Bromodomain 4 (BRD4). Unlike degraders, RIPTAC molecules create trimeric complexes that abrogate BRD4 function selectively within cancer cells, working independently of oncogenic drivers. This "hold and kill" mechanism represents a novel approach distinct from existing AR-targeted therapies.

Phase 1/2 data presented at the October 2025 AACR-NCI-EORTC Conference demonstrated remarkable efficacy in 40 heavily pretreated mCRPC patients:

Endpoint	Result
PSA50 response rate	59% (patients completing ≥2 cycles)
PSA90 response rate	32%
RECIST response	100% (5/5 patients with measurable disease)
FDA Fast Track Designation	Granted August 14, 2025

Advisors: Centerview Partners LLC served as exclusive financial advisor to Halda, with Goodwin Procter LLP as legal counsel. Cravath, Swaine & Moore LLP advised J&J, led by M&A partners Robert I. Townsend III and Jin-Kyu Baek.

Sanofi's $2.2 billion Dynavax acquisition strengthens vaccine portfolio

Announced December 24, 2025, Sanofi agreed to acquire Dynavax Technologies (Nasdaq: DVAX) for $2.2 billion ($15.50 per share, representing a 39% premium to pre-announcement price and 46% premium to 3-month VWAP). The deal, expected to close in Q1 2026, adds two key assets to Sanofi's vaccine franchise.

Heplisav-B commercial success

Dynavax's adult hepatitis B vaccine achieved $268.4 million in 2024 net revenue (26% year-over-year growth) with ~44% U.S. market share, projected to reach 60%+ by 2030. Management guidance targets $315-325 million for 2025, with peak sales projected to exceed $500 million.

Feature	Heplisav-B	Engerix-B (GSK)	Recombivax (Merck)
Dosing schedule	2 doses / 1 month	3 doses / 6 months	3 doses / 6 months
Seroprotection rate	95%	81%	~80%
Adjuvant technology	CpG 1018 (TLR9 agonist)	Aluminum hydroxide	Aluminum hydroxide

Z-1018 shingles vaccine candidate

Phase 1/2 data from 441 adults aged 50-69 demonstrated Z-1018 matches Shingrix efficacy while dramatically improving tolerability:

Measure	Z-1018	Shingrix
Humoral vaccine response rate	100%	96.9%
Grade 2-3 local reactions	12.5%	52.6%
Grade 2-3 systemic reactions	27.5%	63.2%

Part 2 of the trial in adults 70+ began October 2025, with topline data expected in H2 2026. With Shingrix generating $4.5 billion in 2024 sales, Z-1018 represents a potential best-in-class competitor targeting a massive addressable market.

Advisors: Centerview Partners and Goldman Sachs advised Dynavax, with Cooley LLP as legal counsel. Weil, Gotshal & Manges LLP represented Sanofi.

Genmab-Merus $8 billion deal closes with petosemtamab as crown jewel

The Genmab-Merus acquisition completed December 12, 2025, with the subsequent offering period ending December 29. Genmab paid $97 per share (41% premium) to acquire Merus's Biclonics® platform and lead asset petosemtamab, an EGFRxLGR5 bispecific antibody with two FDA Breakthrough Therapy Designations for head and neck cancer. The transaction—Genmab's largest ever—saw approximately 94.2% of shares tendered by mid-December, with subsequent acquisition of the remaining shares.

Petosemtamab mechanism and clinical data

Petosemtamab acts through three distinct mechanisms: EGFR signaling inhibition, EGFR internalization/degradation in LGR5+ cancer cells, and enhanced Fc-mediated immune activation.

Trial Setting	n	Confirmed ORR	Additional Endpoints
1L + pembrolizumab (ASCO 2025)	43	63% (14% CR)	Median PFS: 9.0 mo; 12-mo OS: 79%
2L+ monotherapy (ESMO Asia 2024)	75	36%	Median OS: 11.4 months

Two Phase 3 registrational trials (LiGeR-HN1 and LiGeR-HN2) are enrolling ~500 patients each, with topline data expected in 2026 and projected launch in 2027. Analyst projections suggest peak sales potential of multi-billion dollars in the head and neck cancer market.

Advisors: Jefferies LLC advised Merus, with Latham & Watkins LLP and NautaDutilh as legal counsel. PJT Partners and Morgan Stanley advised Genmab, with A&O Shearman and Kromann Reumert as legal counsel. Morgan Stanley Senior Funding provided a $5.5 billion debt commitment for the acquisition financing, aligned with Genmab's target of <3x gross leverage within two years.

Platinum Equity acquires Owens & Minor Products & Healthcare Services ($375 million)

Owens & Minor (now renamed Accendra Health) completed the sale of its Products & Healthcare Services (P&HS) segment to Platinum Equity for $375 million in cash plus a 5% retained equity stake. The divestiture allows the company to focus on its higher-margin home health (Patient Direct) business while Platinum acquires the legacy medical distribution operations and the "Owens & Minor" brand.

Advisors: Evercore (financial) and Gibson Dunn (legal) advised Platinum Equity.

Azenta sells B Medical Systems ($63 million)

Azenta, Inc. (Nasdaq: AZTA) agreed to sell its B Medical Systems subsidiary—which manufactures vaccine cold-storage and freezer systems—to THELEMA S.à r.l., a Luxembourg-based investment vehicle, for $63 million in cash. The transaction, expected to close by March 31, 2026, enables Azenta to focus on its core lab services and genomic storage business.

Advisors: William Blair (exclusive financial advisor) and Taylor Wessing (legal counsel) advised Azenta.

Royalty Transactions

Royalty Pharma secures 100% of Evrysdi royalties for $300 million

On December 29, 2025, Royalty Pharma announced the acquisition of PTC Therapeutics' final remaining royalty interest in Roche's Evrysdi (risdiplam), paying $240 million upfront plus up to $60 million in sales-based milestones tied to 2027-2029 performance thresholds (three $20 million payments). This transaction gives Royalty Pharma complete ownership of the tiered 8%-16% royalty on worldwide Evrysdi net sales.

Evrysdi royalty structure

Annual Net Sales Tier	Royalty Rate
Up to $500 million	8%
$500 million – $1 billion	11%
$1 billion – $2 billion	14%
Above $2 billion	16%

With Evrysdi achieving CHF 1.6 billion (~$1.9 billion) in 2024 sales and consensus projections reaching CHF 2.3 billion (~$2.9 billion) by 2030, Royalty Pharma is positioned to collect royalties at the highest tier for the foreseeable future.

This transaction represents Royalty Pharma's third and final acquisition of Evrysdi royalty interests from PTC, with cumulative consideration across all transactions totaling approximately $1.9-2.0 billion since 2020.

Evrysdi dominates the SMA treatment landscape

Evrysdi is an oral SMN2 splicing modifier treating all types of spinal muscular atrophy (SMA), affecting approximately 1 in 10,000 newborns. The SMA treatment market reached ~$4.4 billion in 2024 and is projected to grow to $4.8-13 billion by 2030-2031.

Product	2024 Sales	Annual Cost	Administration	Key Characteristics
Evrysdi (Roche)	~$1.9B	~$340,000	Daily oral	Only oral SMA treatment; 91% survival in Type 1 at 5 years
Spinraza (Biogen)	~$1.57B	~$750,000	Intrathecal injection	First approved SMA therapy; maintenance every 4 months
Zolgensma (Novartis)	~$1.0B	~$2.1M one-time	IV gene therapy	One-time treatment; approved for patients <2 years

Evrysdi's February 2025 tablet formulation approval further expanded its label, making it approved for patients from newborns through adults across all SMA types.

Advisors: Goodwin and Maiwald served as legal counsel to Royalty Pharma; investment banks were not disclosed for this transaction.

XOMA Royalty & Takeda strategic royalty transaction

XOMA Royalty and Takeda executed a strategic royalty sharing transaction on December 30, 2025, restructuring economics on mezagitamab in exchange for low-to-mid single-digit royalties across nine development-stage assets from Takeda's externalized portfolio. Partner programs include assets at Neurocrine, Mirum, Oak Hill Bio, and Recursion. The deal exemplifies how royalty aggregators are expanding portfolios through creative restructuring arrangements rather than traditional cash acquisitions.

Licensing & Partnerships

Collaboration and licensing activity spanned AI-driven drug discovery, metabolic diseases, oncology, and healthcare services.

Insilico Medicine AI drug discovery partnerships (>$2 billion potential value)

Fresh off its landmark Hong Kong IPO, Insilico Medicine highlighted a "long list" of R&D collaborations signed throughout 2025 with pharmaceutical partners including Eli Lilly, Exelixis, Sanofi, Fosun Pharma, and Menarini. Combined potential deal value exceeds $2 billion in milestones. These partnerships leverage Insilico's Pharma.AI platform to co-develop novel drug candidates and underscore big pharma's strong interest in AI-driven discovery.

Lupin & Gan & Lee Pharmaceuticals – GLP-1 receptor agonist license

Lupin signed an exclusive licensing agreement with China's Gan & Lee Pharmaceuticals for bofanglutide, a novel fortnightly GLP-1 receptor agonist for Type 2 diabetes and obesity. This first-in-class biweekly dosing option could offer convenience advantages over existing weekly GLP-1s like semaglutide and tirzepatide. Financial terms were not disclosed.

Adlai Nortye & ASK Pharm – Pan-RAS inhibitor AN9025 (~$230 million)

U.S.-China biotech Adlai Nortye licensed its pan-RAS(ON) inhibitor AN9025 to ASK Pharm for Greater China in a deal worth up to RMB 1.6 billion (~$230 million), including more than $20 million in upfront and near-term payments plus tiered royalties. Adlai retains worldwide rights outside the licensed territory for this oncology candidate.

Harbour BioMed & Yantai Lannacheng – Radionuclide therapies alliance

Harbour BioMed (HKEX: 02142) entered a long-term strategic collaboration with Yantai Lannacheng Biotech to co-develop next-generation radionuclide drug conjugates for cancer. Harbour will contribute its antibody discovery platforms while Lannacheng brings radiopharmaceutical payload expertise. The partnership reflects growing interest in targeted radiotherapy as an emerging modality.

Senhwa Biosciences advances pidnarulex through clinical collaborations

Senhwa Biosciences announced multiple collaborations on December 28-29, 2025, to expand applications of its DNA-targeting drug pidnarulex (CX-5461), a first-in-class G-quadruplex (G4) stabilizer that induces synthetic lethality in BRCA1/2-deficient and homologous recombination repair-defective tumors.

Collaboration Partner	Combination Agent	Indication	Status
NCI NExT Program	Trastuzumab deruxtecan (Enhertu)	HER2+ solid tumors	Phase 1b initiating
BeOne Medicines	Tislelizumab (PD-1)	Pancreatic cancer, melanoma	Clinical supply agreement
Sanofi/Regeneron	Cemiplimab	MSS colorectal cancer	IND cleared

Pidnarulex mechanism and clinical data

Phase 1 data in 40 patients demonstrated:

Endpoint	Result
ORR in HR-deficient tumor types	14%
Proof of mechanism	Reversion mutations in PALB2/BRCA2 at progression
Safety profile	Notably absent: myelosuppression and alopecia typical of topoisomerase inhibitors
Immunomodulatory effect	Activates cGAS-STING pathway, converting "cold" tumors to "hot" immune environments

The FDA granted Fast Track Designation and cleared multiple INDs for pidnarulex combination studies.

Mabwell adalimumab biosimilar global expansion

Chinese biotech Mabwell announced its Humira biosimilar (9MW0113, marketed as Junmaikang in China) received marketing approval in Indonesia. The company disclosed formal cooperation agreements in 10+ countries to commercialize the biosimilar internationally, including agreements already in place for Jordan, Peru, and other markets.

Additional partnerships

Intelligent Bio Solutions (December 31): Announced manufacturing partnership with Syrma Johari MedTech for drug screening technology, projecting over 40% production cost savings and approximately 20 percentage points of gross margin improvement.

ImmunoForge (January 1): Korea's ImmunoForge announced active pursuit of out-licensing deals for Phase 2 rare disease candidates PF1801 and PF1804 at the JPMorgan Healthcare Conference 2026.

Shield of Odin & Bespoke Concierge MD: Strategic partnership to expand nationwide access to concierge medical care for veterans across all 50 states.

Financings & Capital Markets

Insilico Medicine IPO validates AI drug discovery ($293 million)

Insilico Medicine listed on the Hong Kong Stock Exchange on December 30, 2025, raising HKD 2.277 billion (~$293 million)—the largest biotech IPO in Hong Kong in 2025 and the first AI-driven biotech to list under Chapter 8.05 rules. The offering was massively oversubscribed: 1,427x for Hong Kong retail and 26.27x for institutional placement. Shares jumped approximately 54% on opening (exceeding HK$37) for a post-listing market cap around HK$20.7 billion (~$2.7 billion).

Rentosertib demonstrates AI-discovered drug potential

Insilico's lead asset rentosertib (ISM001-055) is a first-in-class TNIK inhibitor for idiopathic pulmonary fibrosis (IPF), discovered in just 18 months using the Pharma.AI platform (versus industry average 4.5 years). Phase 2a results in 71 Chinese patients:

Endpoint	60 mg QD	Placebo	Net Benefit
FVC change	+98.4 mL	-20.3 mL	+118.7 mL

Additional findings included dose-dependent reductions in profibrotic proteins (COL1A1, MMP10, FAP). A U.S. Phase 2a trial is ongoing with 60 patients, and Phase 2b/3 initiation is planned for H1 2026. The clinical validation was published in Nature Medicine (May 2025), regarded as the first clinical proof-of-concept milestone in AI drug discovery.

Cornerstone investors and advisors

Investor	Type
Eli Lilly	Strategic/Pharma
Tencent	Tech
Temasek	Sovereign Wealth
Schroders	Asset Management
UBS Asset Management	Asset Management
Oaktree	Alternative Credit
Taikang Life Insurance	Insurance

IPO Sponsors: Morgan Stanley, CICC, and GF Securities.

BioAtla secures $40 million SPV financing for ozuriftamab vedotin

On December 31, 2025, BioAtla (Nasdaq: BCAB) announced a $40 million special purpose vehicle transaction with GATC Health Corp. (via Inversagen AI, LLC) to fund Phase 3 development of ozuriftamab vedotin (Oz-V), a conditionally active biologic ADC targeting ROR2.

SPV Structure	Details
BioAtla ownership	65% (all solid tumor indications)
Inversagen ownership	35%
Initial closing	$5 million (January 2026)
Remaining funding	$35 million upon Phase 3 initiation

Oz-V clinical data supports accelerated approval pathway

Phase 2 data in HPV+ oropharyngeal squamous cell carcinoma (OPSCC) at 1.8 mg/kg Q2W:

Endpoint	Result
ORR (confirmed + unconfirmed)	45%
Confirmed ORR	27%
Disease control rate	100%
Median duration of response	9.9 months
FDA Fast Track Designation	Granted July 2024

The FDA aligned on Phase 3 design in September 2025: ~300 patients randomized 1:1 versus investigator's choice, with dual primary endpoints of confirmed ORR (for accelerated approval) and OS (for full approval).

Advisors: Tungsten Advisors (financial), Orrick, Herrington & Sutcliffe LLP (legal).

Alvotech $100 million term loan

Icelandic biosimilar specialist Alvotech secured a $100 million term loan facility from GoldenTree Asset Management, with a 12.50% interest rate and December 2027 maturity. The facility replaces an existing ABL facility and will support approximately $250 million in 2026 R&D investments and four global biosimilar product launches.

Additional financings

Tonix Pharmaceuticals (December 29): $20 million registered direct offering led by Point72.

Maryland Stem Cell Research Fund (December 30): $1 million Clinical Program grant to Regenerative Orthopedics & Sports Medicine and Britecyte for Phase 1b clinical trial of BRC-OA adipose-derived allograft therapy for knee osteoarthritis.

Bankruptcies & Restructurings

The week saw multiple biotech companies enter bankruptcy protection or announce wind-downs, highlighting persistent capital constraints in the sector—particularly among pre-revenue R&D-stage companies reliant on single funding sources.

ATP portfolio cluster filings

Three Apple Tree Partners-backed companies filed for Chapter 11 protection in rapid succession:

Company	Filing Date	Focus Area	Court/Judge
Evercrisp Biosciences	January 1, 2026	Miniproteins for genetic medicine delivery (kidney, muscle, brain)	Delaware / Judge Laurie Silverstein
Nine Square Therapeutics	January 1, 2026	Computationally-designed small molecules for neurological diseases	Delaware (Case #26-10001)
Red Queen Therapeutics	Mid-December 2025	Undisclosed	Delaware

The cluster of filings from ATP-backed companies suggests potential systemic issues in that venture portfolio.

Legal Advisors: Potter Anderson & Corroon is guiding restructuring for both Evercrisp and Nine Square.

Nido Biosciences wind-down

Massachusetts-based Nido Biosciences announced on December 29 it will wind down operations after Phase 2 data for NIDO-361 in Kennedy's Disease fell below expectations. The company, which had raised $218 million since 2020, stated the drug "no longer is a clinical candidate." The wind-down adds to a growing list of well-funded biotechs unable to sustain operations through clinical setbacks.

Complete deal activity summary: December 23, 2025 – January 4, 2026

Major transactions

Date	Deal	Value	Type	Key Advisors
Dec 29	Royalty Pharma / PTC Evrysdi	$300M potential	Royalty acquisition	Goodwin, Maiwald
Dec 29	J&J / Halda completion	$3.05B	M&A (closed)	Centerview; Goodwin; Cravath
Dec 29	Genmab / Merus (subsequent close)	$8.0B	M&A (completed)	Jefferies, Morgan Stanley; Latham, A&O Shearman
Dec 30	Insilico Medicine IPO	$293M	IPO	Morgan Stanley, CICC, GF Securities
Dec 31	BioAtla / GATC SPV	$40M	Structured financing	Tungsten Advisors; Orrick
Dec 31	Alvotech term loan	$100M	Debt financing	GoldenTree
Dec 30	XOMA / Takeda	Undisclosed	Royalty restructuring	—
Dec 29	Tonix Pharmaceuticals	$20M	Registered direct	Point72 (lead)
Dec 28-29	Senhwa / NCI NExT	NCI-funded	Clinical collaboration	—
Dec 29	Harbour BioMed / Lannacheng	Not disclosed	Co-development	—
Dec 29	Adlai Nortye / ASK Pharm	~$230M potential	License	—
Dec 29	Lupin / Gan & Lee	Not disclosed	License	—

Transactions announced December 23-27

Date	Deal	Value	Type	Key Advisors
Dec 24	Sanofi / Dynavax	$2.2B	M&A (pending)	Centerview, Goldman Sachs; Cooley, Weil Gotshal
Dec 26	ABL Bio / Eli Lilly	$55M	Platform license + equity	—
Dec 23	Vaccinex / FCMI	$60M	Revenue-sharing agreement	—
Dec 23	Windtree / Seismic	Undisclosed	CV pipeline divestiture	—
Dec 30	Platinum Equity / Owens & Minor P&HS	$375M + 5% equity	Divestiture	Evercore; Gibson Dunn
Dec 30	Azenta / B Medical Systems	$63M	Divestiture	William Blair; Taylor Wessing

Investment bank and law firm league table

The holiday period saw concentrated advisory activity across major transactions.

Most active investment banks (sell-side)

Rank	Firm	Mandates	Notable Deals
1	Centerview Partners	2	Dynavax/Sanofi, Halda/J&J
2	Goldman Sachs	2	Dynavax/Sanofi (co-advisor), Cidara/Merck
3	Jefferies	1	Merus/Genmab
3	Morgan Stanley	1	Genmab/Merus (buy-side)

Most active law firms

Rank	Firm	Side	Notable Deals
1	Cooley LLP	Sell-side	Dynavax/Sanofi, Cidara/Merck
2	Goodwin Procter	Both	Halda/J&J (seller), Royalty Pharma/PTC (buyer)
3	Latham & Watkins	Sell-side	Merus/Genmab
4	Cravath, Swaine & Moore	Buy-side	J&J/Halda
5	Weil, Gotshal & Manges	Buy-side	Sanofi/Dynavax

Debt financing

Morgan Stanley Senior Funding provided the only major debt commitment—$5.5 billion for Genmab's Merus acquisition—aligned with Genmab's target of <3x gross leverage within two years.

Commercial and market context

Revenue figures for key assets

Product	2024 Revenue	2025 Guidance/Projection	Peak/2030 Projection
Evrysdi (Roche)	~$1.9B	—	~$2.9B (2030)
Heplisav-B (Dynavax)	$268.4M	$315-325M	>$500M peak
Shingrix (GSK)	$4.5B	—	Market target for Z-1018
Spinraza (Biogen)	~$1.57B	—	Declining vs. Evrysdi

Therapeutic area market sizes

Market	2024 Size	2030 Projection
SMA treatment	~$4.4B	$4.8-13B
Adult hepatitis B vaccine (U.S.)	—	>$900M annually
Head and neck cancer (petosemtamab TAM)	—	≥$1B annually by 2029

Deal premiums and valuation context

Deal	Premium	Valuation Context
Sanofi/Dynavax	39% to close; 46% to 3-mo VWAP	Commercial vaccine + late-stage pipeline
Genmab/Merus	41% to announcement close	2 Breakthrough Therapy Designations
J&J/Halda	—	$3.05B for Phase 1/2 asset + platform

Outlook

The December 28, 2025 – January 3, 2026 period demonstrated sustained deal activity despite the holiday window, with royalty monetizations, M&A closings, and novel financing structures all represented.

Big Pharma's strategic acquisitions continue: J&J's $3.05 billion Halda deal adds an innovative "molecular glue"-style therapy, while Sanofi's $2.2 billion Dynavax acquisition reflects sustained appetite for vaccines. Genmab's $8 billion Merus take-private—with two Breakthrough Therapy designations—reflects premium valuations for late-stage biotech assets.

AI-biotech convergence reaches milestone: Insilico Medicine's landmark Hong Kong IPO validates the AI drug discovery model, with the strong market reception (54% first-day gain) underscoring investor appetite. The company's $2+ billion in cumulative partnership value further demonstrates big pharma's willingness to pay for AI platform access.

Creative financing structures emerge: The BioAtla/GATC $40 million SPV and XOMA/Takeda royalty swap illustrate how companies are navigating capital constraints through asset-level financing vehicles and creative restructuring arrangements rather than traditional equity raises.

Restructuring pressures persist: The cluster of ATP-backed bankruptcies (Evercrisp, Nine Square, Red Queen) and Nido's wind-down highlight that the challenging funding environment continues to claim casualties—particularly among pre-revenue R&D-stage companies reliant on single funding sources.

Royalty Pharma's Evrysdi transaction exemplifies the growing appetite for high-quality commercial-stage royalties, while Centerview Partners emerged as the dominant sell-side advisor and Cooley LLP and Goodwin Procter led legal advisory activity across multiple transactions.

Looking ahead, the JPMorgan Healthcare Conference in early January 2026 will likely catalyze the next wave of dealmaking activity.

Disclaimer: This article is for informational purposes only. The author is not a lawyer or financial adviser. Nothing in this article constitutes investment, legal, or financial advice. All information is derived from public sources and may have changed since writing this article.