Top 10 M&A Trends in Healthcare Life Sciences

1. TOP 10 M&A Trends in Healthcare & Life Sciences January 2025

2. 2025 Outlook: What’s Next for M&A?

3. Pharma M&A in 2025: Key Factors Influencing Industry Consolidation & Growth Key drivers of M&A activity 2025 Patent Expirations & The Pipeline Problem Innovation in emerging therapeutic areas AI revolution in drug discovery Expanding into emerging markets Patent expirations: Blockbuster drugs in oncology, immunology, and cardiovascular health are facing patent cliffs, leading to significant revenue shortfalls Gene therapy: Groundbreaking advancements in curative solutions for genetic disorders are driving interest in gene therapy, making it a prime focus for acquisition targets Accelerating R&D timelines: AI-driven platforms can identify drug candidates, predict clinical trial outcomes, & optimize drug formulations with unprecedented speed and accuracy Rising healthcare expenditure: The Asia-Pacific healthcare market is rapidly expanding due to government investments, higher incomes, and demand for innovative therapies Pipeline gaps: Companies are eyeing biotechs with late- stage or market-ready assets to fill pipeline gaps quickly Precision oncology: The focus on tailored cancer treatments, such as antibody-drug conjugates (ADCs) and CAR-T cell therapies, continues to draw significant M&A interest Reducing costs and risks: By streamlining discovery processes and improving target validation, AI significantly lowers the cost & risk associated with traditional R&D models Regulatory support: Countries like China, India, and Singapore are offering incentives such as streamlined approvals and tax benefits to attract foreign investments

4. Emerging Trends Shaping the Future of M&A in 2025 Mid-cap biotech's as prime targets Mid-cap biotech companies with strong pipelines & focused therapeutic expertise are becoming the attraction of M&A activity due to attractive balance between innovation & risk KEY TRENDS FOR 2025 Programmatic M&A Strategies In 2025, programmatic M&A, a strategy of executing multiple smaller, targeted acquisitions is gaining traction Convergence of biotech and big tech The blending of biotechnology and technology is driving transformative M&A activity, as big tech invests in healthcare to integrate AI, wearable technologies, and digital health ecosystems, revolutionizing drug discovery, patient care, and operational efficiency Licensing deals & partnerships Licensing agreements and strategic partnerships are becoming indispensable tools in the M&A playbook, reflecting a growing recognition that collaboration, rather than competition Sources- Biophramaboardroom

5. Healthcare & Life Sciences M&A Scenario in 2024

6. Investment Trend: Top Healthcare Deals Spanned Across Life Science, Healthcare IT and Digital Health Deal Volume by Sectors, as of September 2024 Investment Thesis Healthcare Information Technology After a cautious period in 2023, healthcare M&A rebounded in 2024. This resurgence was driven by factors such as declining interest rates, reduced capital costs, and substantial private equity reserves. 01 Biopharma 4% Healthcare Services 30% 42% 02 Healthcare M&A saw a notable uptick in Q1 2024, with 29 transactions recorded, indicating sector strength 7% 17% Life Sciences Tools / Diagnostics Biopharma remains the most active subsector, comprising 42% of deal volume, with a focus on oncology and inflammation & immunology 03 MedTech Deal Value by Sectors, as of September 2024 Biopharma $ 46 Bn Healthcare Services $ 56 Bn Investors showed a growing interest in technology-enabled healthcare services, alternative care delivery models, and consumer-focused healthcare solutions 04 MedTech $ 30 Bn Life Sciences Tools / Diagnostics $ 6 Bn Healthcare Information Technology $ 2 Bn

7. Top 10 Deals Deal Size Rationale Deal Size Rationale Expand manufacturing capacity for high-demand treatments Enhance neuromodulation technology for urology & bowel care 01 06 $ 16.5bn $ 3.7 bn CDMO Med Tech Strengthen position in cardiovascular intervention with innovative technologies Advance integrin-targeted therapies for autoimmune diseases 02 07 $ 13.1 bn $ 3.2bn Med Tech Biopharma- ceutical Expand autoimmune and inflammatory disease pipeline with novel immunotherapies Enter weight loss market and expand chronic disease therapies 03 08 $ 4.9 bn $ 3.1bn Biopharmac- eutical Biopharmac- eutical Expand chronic liver disease pipeline and market reach Drive innovation in treatments for serious eye conditions 04 09 $ 4.3 bn $ 3.0 bn Biopharma- ceutical Biotechnology Expands its presence in the life sciences sector with innovative single-use solutions Broaden critical care monitoring solutions portfolio 05 10 $ 4.2 bn $ 2.3 bn Med Tech Med Tech

8. Our Approach Capturing & Filtering M&A Prioritizing & Rating Analyzing Investment Trends Identified ~200 recent mergers and acquisitions and have captured key information of each deals Each deal category were assigned a ranking from 1 to 5 based on their impact on future of healthcare industry Based on deal scores, top 10 deals were identified Later the top 10 deals were analyzed to know the impact and its implications on healthcare Key information such as deal size, deal driver, impact were evaluated for each deals Deal were prioritized based on possible scores & different pre- assigned weights for each deal

9. Top 10 M&A Deals of 2024

10. Novo Holdings' Acquisition of Catalent to Enhance Manufacturing Capabilities and Strengthen Global Supply Chain 01 Acquisition strengthens Novo Holdings’ position in pharmaceutical manufacturing and accelerates global supply chain integration COMPLEMENTARY CAPABILITIES Catalent's proficiency in contract development and manufacturing complements Novo Nordisk's pharmaceutical operations, providing specialized facilities and expertise to support the production of complex biologic and oral solid-dose products WHY IS THIS A SIGNIFICANT DEAL? Deal Size Focus Global investment firm focused on healthcare innovation WHY IS THIS A SIGNIFICANT DEAL? POTENTIAL OPPORTUNITY This acquisition positions Novo Nordisk to meet the escalating global demand for GLP-1-based treatments, potentially increasing its market share and reinforcing its leadership in diabetes and obesity care $16.5Bn Pharma Manufacturing & Supply Chain Impact As part of the transaction, Novo Holdings plans to divest three of Catalent's fill-finish facilities—located in Anagni (Italy), Bloomington (USA), and Brussels (Belgium)—to Novo Nordisk for $11 billion. This move aims to enhance Novo Nordisk's production efficiency and meet the escalating demand for its products COMBINED NETWORK The integration of Catalent's extensive network of over 50 sites worldwide enhances Novo Nordisk's global reach, enhancing its ability to meet global demand and ensuring greater supply chain resilience CDMO specializing in advanced manufacturing & drug delivery solutions Sources: Catalent

11. J&J’s Acquisition of Shockwave for $13.1 Bn to Expand its Cardiovascular Intervention Portfolio 02 Acquisition extends J&J MedTech’s position in cardiovascular intervention and accelerates its shift into higher-growth markets COMPLEMENTARY CAPABILITIES Shockwave’s first-to-market IVL platform to complement J&J’s existing cardiovascular solutions, enabling effective treatment of calcified CAD and PAD lesions WHY IS THIS A SIGNIFICANT DEAL? Deal Size Focus Pharma company focused on healthcare, medical devices, consumer products STRATEGIC RATIONALE POTENTIAL OPPORTUNITY The acquisition enables J&J to expand into underpenetrated cardiovascular markets while driving innovation and growth in high-demand segments like CAD and PAD $13.1Bn MedTech CVD & PAD Impact Enhances J&J’s MedTech cardiovascular portfolio into two of the highest-growth, innovation-oriented segments of cardiovascular intervention- coronary artery disease (CAD) and peripheral artery disease (PAD) Expands J&J's pipeline and market reach, driving revenue growth and innovation in underpenetrated markets COMBINED NETWORK Integration of Shockwave’s IVL technology to J&J Medtech’s established global commercial infrastructure, will provide numerous opportunities to accelerate the adoption of technologies to patients in need Medical device company treating calcified cardiovascular disease Sources: J&J

12. Vertex’s Acquisition of Alpine for a $4.9 Bn to Strengthen Immunology Pipeline 03 Acquisition enables Vertex to expand its therapeutic offerings into new areas of autoimmune and inflammatory diseases COMPLEMENTARY CAPABILITIES Alpine's expertise in protein-based immunotherapies and their proprietary platform for engineering novel therapeutics enhance Vertex's capabilities in developing treatments for autoimmune and inflammatory conditions WHY IS THIS A SIGNIFICANT DEAL? Deal Size Focus Biopharma company with the focus on cystic fibrosis STRATEGIC RATIONALE POTENTIAL OPPORTUNITY Povetacicept's dual mechanism of action as an antagonist of BAFF and APRIL cytokines holds potential for treating various autoimmune diseases beyond IgAN, including lupus nephritis and autoimmune cytopenias $4.9Bn Immunology & Inflammation Impact With no approved therapies targeting the underlying cause of IgA nephropathy (IgAN), Vertex has the potential to lead in this therapeutic area, addressing a significant unmet medical need The deal represents Vertex's largest acquisition to date, reflecting its commitment to diversifying and strengthening its therapeutic offerings beyond cystic fibrosis COMBINED NETWORK Merger brings together Vertex’s robust R&D infrastructure with Alpine's specialized expertise in immunotherapy, potentially accelerating the development and commercialization of innovative treatments Biopharma company focused on immunotherapies for cancer, autoimmune diseases Sources: Vertex, Biospace, Biopharmadive

13. Gilead Acquired CymaBay to Bolster its Existing Liver Disease Portfolio and Grow Beyond their Core HIV Business 04 Acquisition enhances Gilead's credibility and market share in the rare disease and hepatology segments COMPLEMENTARY CAPABILITIES CymaBay'sseladelpar, a PPARδ agonist with a best-in-disease profile for second-line PBC, complements Gilead's liver disease portfolio by enhancing its therapeutic offerings in hepatology WHY IS THIS A SIGNIFICANT DEAL? Deal Size Focus Biopharma company develops innovative therapies STRATEGIC RATIONALE POTENTIAL OPPORTUNITY Seladelpar’s approval opens doors for Gilead to enter a niche market with limited competition, potentially driving significant market share $4.3Bn Liver Diseases Impact Gilead's acquisition of CymaBay allows it to solidify its position in the liver disease therapeutic segment, particularly with seladelpar's potential to address unmet needs in primary biliary cholangitis (PBC) With seladelpar expected to be a blockbuster treatment, analysts predict its peak sales could reach $847 million COMBINED NETWORK By incorporating CymaBay's assets, Gilead reinforces its position as a leader in developing innovative therapies for challenging liver diseases, building on its more than 20-year legacy in this field Biopharma company focused on therapies of liver Sources: Gilead, GenEdge, FierceBiotech

14. BD Acquired Edward Lifesciences’ Critical Care Product Group to Become Leader in Advanced Monitoring Technology Leader 05 Acquisition expands BD’s portfolio of smart connected care solutions with broad set of leading monitoring technologies, advanced AI-enabled clinical decision tools and robust innovation pipeline COMPLEMENTARY CAPABILITIES The acquisition expands BD's portfolio with advanced patient monitoring solutions, including AI-enabled clinical decision tools, complementing BD's existing technologies in operating rooms and intensive care units WHY IS THIS A SIGNIFICANT DEAL? Deal Size Focus Medical Technology company STRATEGIC RATIONALE POTENTIAL OPPORTUNITY Integrating Edwards' Critical Care products provides BD with new avenues for growth through the development of smart connected care solutions, leveraging combined data sets and platforms to enhance patient outcomes $4.2Bn Critical Care Impact BD will be positioned as a leader in advanced monitoring technology, leveraging a broad set of leading monitoring technologies and a robust innovation pipeline to better serve healthcare providers globally Acquisition is anticipated to be immediately accretive to BD's revenue growth and earnings per share, contributing positively to the company's financial performance COMBINED NETWORK Combining BD's existing infusion platforms with Edward’s advanced monitoring technologies opens avenues for developing closed-loop hemodynamic monitoring and integrated IV fluid and medication administration systems Critical Care product group develops hemodynamic system Sources: BD

15. Boston Scientific Advances its Urology Portfolio with the Integration of Axonics' Cutting-Edge Sacral Neuromodulation Technologies 06 Acquisition expands Boston Scientific’s urology portfolio with differentiated technology to treat urinary and bowel dysfunction COMPLEMENTARY CAPABILITIES Axonics brings a portfolio of sacral neuromodulation (SNM) therapies, including the Axonics R20™ & Axonics F15™ Systems, which are minimally invasive treatments for overactive bladder & fecal incontinence, complementing Boston Scientific's existing urology offerings WHY IS THIS A SIGNIFICANT DEAL? Deal Size Focus MedTech company developing medical devices STRATEGIC RATIONALE POTENTIAL OPPORTUNITY Acquisition enables Boston Scientific to enter the high-growth sacral neuromodulation market, broadening its urology portfolio and addressing unmet patient needs in urinary and bowel dysfunction treatments $3.7Bn MedTech Urology Impact Axon is expected to bring complimentary product portfolio to BS’ Urology business Combination is expected to strengthen BS’ ability to serve urologist who are treating with chronic conditions COMBINED NETWORK Axonics’ revenue growth profile is anticipated to be highly accretive to the Boston Scientific Urology Business in 2024. The impact to Boston Scientific adjusted earnings per share is expected to be immaterial in 2024 and accretive thereafte MedTech company developing sacral neuromodulation devices Sources: BS

16. Eli Lilly Acquires Morphic to Improve Outcomes for Patients with Inflammatory Bowel Disease 07 Acquisition reinforces Lilly's investment in the inflammation and immunology field, aiming to deliver first-in-class molecules for the benefit of patients COMPLEMENTARY CAPABILITIES Morphic's expertise in developing selective oral integrin therapies, especially their lead candidate MORF-057 targeting α4β7 integrin for IBD treatment, is expected to open up new possibilities for earlier intervention as well as provide potential for severe diseases WHY IS THIS A SIGNIFICANT DEAL? Deal Size Focus Pharma company with the focus on innovative medicines STRATEGIC RATIONALE POTENTIAL OPPORTUNITY Acquisition positions Lilly to strengthen its presence in the gastroenterology market by offering innovative oral treatments for conditions like ulcerative colitis & Crohn's disease, potentially improving patient outcomes & expanding treatment options $3.2Bn Immunology & Inflammation Impact Eli Lilly's acquisition of Morphic Therapeutic underscores its commitment to advancing oral therapeutic options, which could lead to earlier intervention and combination treatments in diseases like ulcerative colitis Acquisition is part of Lilly's strategy to diversify its portfolio beyond obesity treatments, adding a promising IBD* therapy to its pipeline COMBINED NETWORK Integrating Morphic's innovative integrin technology platform and pipline with Lilly's established R&D infrastructure is expected to accelerate the development of new therapies for chronic diseases Biopharma company developing oral integrin therapies *IBD – Inflammatory Bowel Disease Sources: Eli Lilly, Reuters

17. Roche to Enter Growing Weight Loss Treatment Market to Offset its Falling Oncology’s Revenue 08 Acquisition allows Roche to enter weight loss treatment market & expand its pipeline in chronic diseases, including metabolic & cardiovascular disorders COMPLEMENTARY CAPABILITIES Carmot’s R&D portfolio includes clinical stage subcutaneous and oral incretins with best-in- class potential to treat obesity in patients regardless of diabetes, as well as a number of preclinical programs WHY IS THIS A SIGNIFICANT DEAL? Deal Size Focus Biopharma company focuses on advancing diagnostics and targeted therapies STRATEGIC RATIONALE POTENTIAL OPPORTUNITY Acquisition expands Roche’s ability to develop treatments addressing multiple facets of obesity & associated conditions, leveraging synergies with its existing pipeline & diversify into other areas such as cardiovascular, retinal & neurodegenerative disease $3.1Bn Metabolic disorders Impact Roche secured Carmot Therapeutics’ differentiated portfolio of incretin-based therapies, bolstering its presence in the rapidly growing obesity and diabetes markets Acquisition aligns with Roche’s strategic focus on expanding its pharmaceutical pipeline in chronic diseases, including metabolic and cardiovascular disorders COMBINED NETWORK Acquisition marks the entry for Roche to join the growing market of weight loss treatment joining other pharma companies including AstraZeneca, Eli Lilly and Novo Nordisk and strengthen its pipeline of medicines to offset falling Oncology’s sales Biopharma company focused on metabolic diseases and cancer therapies Sources: Roche, Reuters

18. Merck Acquires EyeBio to Strengthen Retinal Disease Portfolio and Expand Ophthalmology Innovation 09 Acquisitions diversifies Merck’s portfolio of experimental drugs, adding innovative treatments for eye diseases and reinforcing its strategic focus on ophthalmology COMPLEMENTARY CAPABILITIES EyeBio brings its lead candidate, Restoret™ (EYE103) and promising pipeline of candidates with the potential to provide new treatment options for patients with retinal diseases WHY IS THIS A SIGNIFICANT DEAL? Deal Size Focus Pharma company providing innovative health solutions STRATEGIC RATIONALE POTENTIAL OPPORTUNITY Acquisition allows Merck to enter the ophthalmology market, particularly in treating retinal diseases such as DME and NVAMD, addressing significant unmet medical needs $3.0Bn Retinal diseases Impact Acquisition positions Merck as a leader in the rapidly growing ophthalmology market, allowing it to compete effectively against established players Merck is set to advance the development of Restoret™, EyeBio’s flagship candidate, into pivotal Phase 2b/3 clinical trials for diabetic macular edema (DME) and neovascular age-related macular degeneration (NVAMD), significantly expanding its presence in ophthalmology COMBINED NETWORK By integrating EyeBio's assets, Merck aims to advance with rigor and speed the development of promising candidates targeting retinal diseases, leveraging combined strengths to bring therapies to patients worldwide Biotech company with the focus on targeted eye therapies Sources: Merck, Reuters, Fiercebiotech

19. Ingersoll Rand Expands its Presence in Life Sciences Through the Acquisition of ILC Dover 10 Acquisition expands the addressable market and strengthens capabilities in biopharma and pharmaceutical solutions COMPLEMENTARY CAPABILITIES ILC Dover brings advanced single-use solutions for biopharma and pharma applications, complementing Ingersoll Rand's existing liquid handling technologies and positive displacement pumps WHY IS THIS A SIGNIFICANT DEAL? Deal Size Focus Industrial manufacturing company STRATEGIC RATIONALE POTENTIAL OPPORTUNITY Acquisition expands Ingersoll Rand's addressable market by over $10 billion, reaching approximately $65 billion, in fragmented segments with significant growth potential $2.3Bn Life Science Solutions Impact Acquisition will increase access for existing Ingersoll Rand life science solutions through established direct channel and strong customer connectivity in biopharma, pharma, cell and gene therapy, and related life science end markets ILC Dover's mid-teens three-year historical organic revenue growth rate will contribute to Ingersoll Rand's strong financial performance and expansion in the life sciences market COMBINED NETWORK Ingersoll Rand will establish a dedicated life sciences platform within its Precision and Science Technologies segment, integrating ILC Dover and existing life science-focused brands, with projected revenues of around $700 million Company specializing in production of engineered solutions Sources: IR

20. Some of the Other Important Deals (1/2) Acquirer Deal Size (in $bn) Target Company Type Focus Area In acquiring Deciphera, Ono Pharma not only strengthens its oncology portfolio, but also expands its presence in US and Europe, leveraging Deciphera's expertise in kinase drug discovery & established commercialization platforms 2.4 In acquiring Inhibrx, Sanofi strengthens its rare disease pipeline by advancing SAR447537, a potential treatment for alpha-1 antitrypsin deficiency 2.0 In acquiring AMBRX’s ARX517, J&J not only expands its oncology portfolio, but also advances its focus on next-generation antibody-drug conjugates (ADCs) for metastatic prostate cancer, reinforcing its commitment to targeted cancer therapies 2.0 In acquiring the Silkroad medical, Boston Scientific not only advances its vascular portfolio but also enhances its stroke prevention technology, targeting carotid artery disease treatment 1.8 In leveraging Mariana's expertise in radioligand therapy, Novartis not only strengthens its radiopharmaceutical pipeline but also sharpens its focus on innovative therapies for solid tumors 1.8 Sources: Deciphera, Sanofi, J&J, Genmab, Novartis

21. Some of the Other Important Deals (2/2) Acquirer Deal Size (in $bn) Target Company Type Focus Area In acquiringAiolos Bio’s AIO-001, GSK not only enhances its respiratory portfolio but also expands treatment options for asthma, targeting patients with low T2 inflammation with potential best-in-class therapy 1.4 In strengthening its Patient Direct segment, Owens and Minor not only expands its offerings in home-based care but also broadens its presence in the respiratory, sleep apnea, diabetes, and wound care markets 1.4 In acquiring the Silkroad medical, Boston Scientific not only advances its vascular portfolio but also enhances its stroke prevention technology, targeting carotid artery disease treatment 1.3 In acquiring Specialty Networks, Cardinal Health not only prioritizes growth in its Specialty business but also strengthens its capabilities in therapeutic areas, enhancing provider-focused analytics 1.2 In acquiring Mallinckrodt’s Therakos business for $925 million, CVC not only strengthens its healthcare portfolio but also expands its focus on immunomodulatory therapies 0.9 Sources: Deciphera, Sanofi, J&J, Genmab, Novartis

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