As M&A slows, Boston’s biotech sector stands out
Writer: Mariana Hernandez
July 2025 — As 2025 reaches the midpoint, Boston’s business environment reflects a national slowdown in merger and acquisition activity. But the region’s life sciences sector remains active, with billion-dollar deals and long-term investment opportunities.
According to a recent report, contrary to expectations heading into the year, M&A activity has slowed in 2025 across the United States amid greater uncertainty tied to shifting trade policies. Many midsize companies are taking a wait-and-see approach in this unpredictable environment.
PwC U.S. pointed out that in previous years, the month of May has been key for so-called megadeals, but this year more than half of business executives surveyed believe they are missing opportunities because of the fast-changing environment. Less than one in three (32%) company leaders expressed a positive 12-month outlook, with a strategic approach towards cost reductions, financial adjustments, and diversifying supply chains.
Boston’s life sciences sector, however, is an exception. GSK has shown a strong pace in pharma investment, after closing a $1.2 billion upfront payment acquisition of Boston Pharmaceuticals’ lead drug, efimosfermin alfa, which will treat and prevent progression of steatotic liver disease. In January, GSK made another big move by acquiring Plymouth-based cancer drug developer IDRx for up to $1.15 billion.
These acquisitions, added to GSK’s vaccine R&D and infectious disease team moving from Maryland to Cambridge, are part of an innovation strategy, aimed at attracting and retaining skilled talent in the region.
Other life science companies making big moves in the region include Sanofi through the acquisition of Watertown’s Vigil Neuroscience Inc.; Inozyme Pharma Inc. acquiring BioMarin Pharmaceutical Inc. in California; Water Corp. acquiring Halo Labs, and Lookout Inc. also closing a sale to Minnesota-based Fortra.
These transactions show that biotech and pharma companies continue to see Boston as a key location for innovation and growth, even in slower economic times.
While deals in other industries may be down, law firms in Boston are preparing for continued growth in the biotech sector. Kirkland & Ellis, one of the top law firms in the country, recently added three M&A experts with life sciences credentials, as a strategic move drawn by the region’s strong economic growth in technology and life sciences sectors.
Moves like this suggest that firms believe the M&A market will bounce back, and they will be ready when it does.
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