Life sciences M&A trends

A year of rebound and redirection

Life sciences mergers and acquisitions (M&A) deal flow in 2025 experienced a dynamic shift between the first and second half of the year. Limited dealmaking, driven by market uncertainty at the beginning of the year, was followed by a robust rebound in activity in late 2025. By the end of November, 193 transactions totaling $220 billion had taken place, surpassing 2024’s total deal value (figure 1).



Pharma led the charge, accounting for more than half of the year’s deal value as companies pursued larger, more strategic transactions (figure 2). With the average deal size rising by $450 million year over year, a 70% increase over 2024, we observed a shift to derisked assets and deal activity in highly competitive disease areas (e.g., metabolic dysfunction-associated steatohepatitis or MASH) to drive the next phase of innovation and growth in life sciences.

Figure 1. M&A and venture activity in life sciences (2021–2025)

Source: Deloitte analysis of CapIQ and Crunchbase data on November 30, 2025.

The sluggish start to 2025 dealmaking was driven by lingering global economic turbulence, persistent inflation, and an unclear regulatory environment, which slowed both M&A and venture activity (figure 2). The combination of factors raised both cost and complexity, causing investors to be highly selective and more risk averse. 



However, as the year progressed, life sciences M&A showed renewed momentum with buyers looking at external innovation opportunities to replenish pipelines and reposition portfolio priorities. This late-year improvement suggests that the market is rebuilding its footing and points to a cautiously optimistic outlook for 2026, as investors continue stepping off the sidelines in search of derisked, growth-oriented assets.

Figure 2. M&A and venture activity in life sciences by subsector (2021–2025)

Note: Percentages may not total 100 due to rounding.

Source: Deloitte analysis of CapIQ and Crunchbase data on November 30, 2025.

Other signals revealed themselves during 2025, shaping deal activity:

• A shift toward acquisitions of single or smaller portfolios of clinical assets, which are subsequently tucked into existing portfolios.

• An uptick in MedTech and surge in diagnostics dealmaking, driving greater deal volume and value in 2025. A notable amount of diagnostic activity occurred as sellers divested noncore assets.

• Lesser dealmaking in the CRO/CDMO subsector, which stalled in 2025, with deal value retrenching by more than 70% compared to 2024.

4 key takeaways from the 2025 life sciences M&A market

Turning insight into action for life sciences leaders


In 2025, the life sciences deal landscape was shaped by strategic transactions targeting proven assets in oncology, diagnostics, and next-generation manufacturing. Across all segments, stakeholders prioritized clinical value, technological sophistication, and the ability to navigate regulatory and market uncertainty. In 2026, the environment is expected to remain bullish, with both public and private companies driving significant acquisitions.

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