M&A
13 articles
China proposes curbs on foreign acquisitions of critical biopharma technologies
- China is proposing new restrictions on foreign acquisitions of critical biopharma technologies as it seeks to keep control of its fast-growing drug development industry.
- Trade coverage of the draft (Fierce) describes it as targeting full transfers of proprietary cell and gene therapy, siRNA and pathogen gain-of-function platforms, while standard out-licensing and CRO/CDMO outsourcing appear to be exempt.
- The final text and timing are not confirmed.
If licensing really stays exempt, the draft mostly shuts the door on buying a Chinese platform company outright while leaving the license-in model that Western pharma has leaned on intact. That nudges deal structure toward options and NewCo licensing, not away from China. Buyers of cell, gene and siRNA platforms are the ones who should re-run their pipelines of targets.
STAT+: China moves to restrict foreign biotech acquisitions ↗
Merck KGaA buys Silence Therapeutics for about $1.3B after siRNA Phase 2 win
- Merck KGaA will acquire Silence in an all-cash deal at $20 per ADS, an equity value of about $1.3 billion, via a UK scheme of arrangement.
- The price is a 130% premium to the prior close, and Silence called it the outcome of a competitive sale process.
- The deal follows positive Phase 2 data for Silence's siRNA divesiran in polycythemia vera.
A 130% premium for a single mid-stage asset says Merck KGaA is paying for de-risked rare-haematology data and a validated platform, not for breadth. It needs growth after its portfolio gaps, and siRNA offers a modality it can slot in. Watch whether Silence's platform survives as a standalone engine or just feeds divesiran.
Merck KGaA buys Silence in $1.3B deal after siRNA drug's phase 2 blood cancer win ↗
Lakefront offloads its shelved CAR-T pipeline to Stoffels-backed Armed Cell
- Lakefront Biotherapeutics, the former Galapagos, is selling its abandoned cell therapy programs to Armed Cell Therapeutics, a new Belgian company co-founded and chaired by ex-Galapagos CEO Paul Stoffels.
- Reported terms are a small upfront payment (single-digit millions of euros) plus up to roughly $230 million in milestones.
- The package covers two armed CAR-Ts nearing the clinic in non-Hodgkin lymphoma and small cell lung cancer, plus three early preclinical projects.
A tiny upfront against a long milestone tail is what a buyer pays for preclinical assets nobody else wanted: the risk stays with Armed Cell, and Lakefront gets optionality without cost. For Lakefront, the signal is a clean pivot to autoimmune T-cell engagers. The open question is whether Armed Cell, run by the man who started the CAR-T bet, can fund the clinic.
Rebranded Galapagos finally finds buyer for unwanted cell therapy pipeline ↗
Viatris to buy Pacira for about $1.65B to add non-opioid pain franchise
- Viatris agreed to acquire Pacira BioSciences in an all-cash deal at $36.50 per share, a premium of roughly 45% to the last close.
- The prize is Pacira's non-opioid products EXPAREL for post-surgical pain and ZILRETTA for knee osteoarthritis pain, plus a knee OA gene therapy candidate.
- Closing is expected by the end of 2026, funded mainly from cash on hand.
This is Viatris buying a commercial pain franchise rather than science, which fits its pivot from generics toward branded cash flow. The pairing with its pending fast-acting meloxicam decision hints at a non-opioid pain sales force, though EXPAREL's generic-style competition is the long-term risk to watch.
Viatris to snap up Pacira's non-opioid pain pipeline for $1.65B ↗
Shionogi to buy IntraBio for $2B, adding the rare disease drug Aqneursa
- Shionogi will acquire Austin-based IntraBio for $2 billion in cash, making it a subsidiary of its US arm.
- The prize is Aqneursa, an oral therapy approved for Niemann-Pick disease type C and, since, for ataxia-telangiectasia.
- Closing is expected in November–December 2026.
Buying a commercial-stage asset outright is a shift for Shionogi, which has leaned on its anti-infective franchise and partnerships. A rare neurology product with two indications adds revenue with a modest sales force and a clear niche. The question is whether Aqneursa can grow past NPC and A-T.
Shionogi to pay $2B for IntraBio, a commercial rare disease biotech ↗
Lexeo Expands Friedreich's Ataxia Pipeline With Mantle Buyout
- Lexeo Therapeutics agreed to acquire Mantle Therapeutics for up to $21.3 million, adding four frataxin-targeting Friedreich ataxia programs to its AAV gene therapy pipeline.
- Early data on the lead acquired asset in a small patient cohort showed a meaningful improvement on a standard ataxia rating scale.
- Lexeo also struck new research collaborations with Weill Cornell Medicine, Vivet Therapeutics, and Apertura Gene Therapy to pursue CNS-penetrant treatment approaches.
At $21.3M this is pocket change next to Telix-ITM, but strategically it's the smarter bolt-on: Lexeo already runs an AAV cardiac program in Friedreich's ataxia, so four more frataxin-targeting assets plus fresh CNS-penetrant collaborations with Weill Cornell, Vivet, and Apertura consolidate it as the depth player in a disease few large-caps are chasing.
Lexeo takes up the Mantle in $8M acquisition for Friedreich ataxia assets ↗
Telix Bets $1.65B on Radiopharma Rival to Take On Novartis
- Telix Pharmaceuticals agreed to acquire Germany's ITM for $1.65 billion upfront, plus up to $700 million in milestones tied to its lead radiopharmaceutical candidate.
- The deal pairs Telix's diagnostics business with ITM's lutetium-177 supply chain, setting up direct competition with Novartis' Lutathera in neuroendocrine cancer.
- Telix will assume some of ITM's debt, and the companies expect to close the transaction by year-end 2026.
At $1.65B upfront plus $700M in milestones — and assumed debt pushing the all-in cost near $2.4B — Telix is essentially replicating Novartis's own AAA/Endocyte playbook: buy the isotope supply chain, not just the molecule. Pairing ITM's Lu-177 manufacturing with Telix's diagnostics scale is the only realistic way a challenger dents Lutathera's neuroendocrine near-monopoly.
Telix beams into Novartis' territory with $1.6B ITM acquisition ↗
Telix Acquires Radioisotope Maker ITM in Deal Worth Up to $2.35B After FDA Setback
- Telix Pharmaceuticals (Australia) agreed to acquire privately held ITM Isotope Technologies Munich (Germany) for about $1.65 billion upfront, largely in Telix shares plus assumed ITM debt, with up to $700 million more in milestones for a potential $2.35 billion total.
- The deal follows the FDA's surprise rejection of ITM's lead drug ITM-11, a GEP-NET radiopharmaceutical meant to rival Novartis's Lutathera, over manufacturing issues at a third-party facility, not safety or efficacy concerns.
- ITM also brings a profitable, commercial-scale isotope production and supply business, strengthening Telix's control over its radiopharmaceutical isotope supply chain.
- Post-close, Telix shareholders will hold about 76.3% of the combined firm, with ITM shareholders holding about 23.7%.
- Combined pro forma 2026 revenue is projected above $1.3 billion, with positive operating earnings expected from 2027.
This is a supply-chain acquisition wearing a pipeline-expansion label. Telix just watched ITM's lead asset get rejected over third-party manufacturing — not efficacy — so buying the isotope producer outright is the cleanest way to internalize that risk rather than keep depending on external CDMOs. Expect Telix to lean hard on ITM's commercial-scale production capacity to de-bottleneck its own growing radiotherapeutic franchise. The structure tells the real story: roughly $1.65B mostly in stock plus assumed debt, with $700M gated behind milestones, is classic risk-sharing for an asset whose flagship product just got an unexpected FDA no. Telix isn't paying cash for certainty it doesn't have yet. Strategically, this vaults Telix into direct, vertically integrated competition with Novartis's Lutathera franchise, and signals radiopharma is entering a consolidation phase where isotope supply, not just molecules, is the scarce asset worth owning.
Radiopharma companies merge after one receives surprise FDA rejection ↗
North Immunology Goes Public via Aethlon Merger, Raises $180M for Eczema Drug
- North Immunology, incubated for two years inside hedge fund ADAR1 Capital Management, is going public via a reverse merger with Nasdaq-listed Aethlon Medical, trading as North Immunology under new ticker "NRTX"; Aethlon holders keep about 4.75%.
- Lead asset NOR-101 is a half-life-extended bispecific antibody targeting IL-13 and IL-18, being developed for atopic dermatitis (eczema) as a potential next-generation competitor to Dupixent.
- The deal includes a $180 million PIPE financing from investors such as Bain Capital, Janus Henderson, and Deep Track Capital, funding operations into the second half of 2028.
- Phase 1a is planned for early 2027, with interim PK/safety data by mid-2027 and Phase 1b/2b topline results in 2028.
The reverse-merger-plus-PIPE playbook is becoming the default exit ramp for well-capitalized private biotechs in a still-tepid IPO market — expect more of these Nasdaq-shell conversions through 2026 as sponsors sidestep the pricing risk of a traditional roadshow. More interesting is the origin story: ADAR1 Capital incubating NOR-101 in-house for two years before spinning it out is a hedge fund acting like a venture creator, not just a stock-picker — a build-then-monetize model worth watching as more crossover funds chase asset-level returns. Going after IL-13/IL-18 dual blockade puts North squarely in Dupixent's shadow; differentiated mechanism aside, atopic dermatitis is already crowded (Amgen's rocatinlimab, Sanofi/Regeneron's own follow-ons), so competitive execution and pricing power at launch will matter more than novelty. With Phase 1a not starting until 2027, there's no near-term catalyst — this is a story investors have to hold through, not trade around.
North Immunology goes public via reverse merger as eczema drug heads toward clinic ↗
Merck KGaA Acquires PostEra's Oral Fertility Drug Programs
- Merck KGaA, through its EMD Serono fertility business, has agreed to acquire two oral small-molecule fertility drug candidate programs from PostEra for an undisclosed sum described as "mid-double-digit millions."
- Both programs are orally administered small molecules, contrasting with the injectable biologics that currently dominate fertility treatment.
- One program comprises FSHR (Follicle-Stimulating Hormone Receptor) agonists intended for ovarian stimulation during IVF.
- The other comprises LHCGR (Luteinizing Hormone/Choriogonadotropin Receptor) agonists aimed at male infertility and triggering ovulation during IVF.
- PostEra, an AI-driven drug-design startup named one of C&EN's "10 Start-Ups to Watch" in 2025, developed both candidate series using its computational platform.
A bolt-on, not a market entry: EMD Serono is already a top-three fertility player commercially, so this reinforces an existing franchise rather than opening a new front — low-risk portfolio strategy. The real story is oral-vs-injectable: IVF stimulation has run almost entirely on injectable biologics for decades, and a credible oral FSHR/LHCGR agonist would be a genuine convenience disruption, expanding the addressable market to patients who avoid treatment due to injection burden. On price, "mid-double-digit millions" for two early/preclinical programs is a small, platform-validation-scale bet, not a transformative deal — size expectations accordingly. And for PostEra, getting bought for its output rather than its platform is a telling data point in the AI-drug-discovery debate: near-term value may sit in the assets, not the software.
Merck KGaA's EMD Serono Acquires Two of PostEra's Oral Fertility Drug Programs
- EMD Serono, Merck KGaA's US/Canada healthcare business, acquired two fertility-focused small-molecule drug discovery programs from AI-driven biotech PostEra for an undisclosed sum described as "mid-double-digit millions."
- The deal covers an oral FSHR (follicle-stimulating hormone receptor) agonist for ovarian stimulation in IVF, and an oral LHCGR (luteinizing hormone/choriogonadotropin receptor) agonist for male infertility and as an ovulation trigger.
- Both candidates are orally dosed small molecules, positioned as a potential alternative to the injectable gonadotropins that currently dominate fertility treatment.
- PostEra used its computational/AI discovery platform to design the molecules and to engineer around selectivity and liability issues; the startup had pivoted toward fertility and PMOS programs roughly a year earlier.
- The transaction acquires specific programs rather than the whole company, following PostEra's 2025 C&EN "10 Startups to Watch" recognition.
Mid-double-digit millions for two programs, not a company, is the tell: EMD Serono is buying de-risked assets à la carte rather than paying PostEra's AI-platform premium, the same capital-efficient logic behind a growing wave of biopharma bolt-ons that skip a full acquisition. Fertility is a structurally underserved category: injectable gonadotropins have dominated IVF stimulation for decades with almost no oral competition, so a credible oral FSHR/LHCGR agonist pair is a genuine convenience-and-compliance wedge, not incremental pipeline filler. For PostEra, the more interesting signal is monetization strategy: an AI-native biotech cashing out individual de-risked programs rather than building toward its own pipeline or IPO. For Merck KGaA, it's a low-risk way to reload EMD Serono's fertility franchise with next-gen oral chemistry without integration risk.
BioXcel Therapeutics Files for Chapter 11, Taps Teva as Stalking-Horse Bidder in Up to $125M Asset Sale
- BioXcel Therapeutics filed for Chapter 11 bankruptcy on August 27, 2026, after running out of cash to service roughly $112M in secured debt, missing an August 21 deadline under its Oaktree credit agreement.
- Teva Pharmaceuticals agreed to serve as stalking-horse bidder in a court-supervised Section 363 auction for substantially all of BioXcel's assets.
- Teva's opening bid: $57.5M cash at closing plus up to $67.5M in milestones, for up to $125M total plus assumed liabilities.
- Key asset: Igalmi (dexmedetomidine sublingual film), already marketed for agitation in schizophrenia/bipolar disorder; an at-home-use version is under FDA review, with a decision expected around November 14, 2026.
- Competing bids are due October 9, 2026, ahead of a possible auction and bankruptcy-court sale hearing.
A $57.5M floor bid for a company with an FDA-approved, already-marketed drug is the real tell here — Oaktree's credit agreement, not Igalmi's commercial prospects, forced this outcome. Whether Teva's up-to-$125M offer looks cheap hinges entirely on that November 14 at-home sNDA decision: clear it, and the milestone structure lets Teva capture most of the upside for a fraction of what a clean acquisition would cost; miss it, and Teva still walks away with a marketed asset at a steep discount either way. For Teva, this reads as opportunistic bolt-on shopping in neuroscience/CNS rather than strategic necessity — cherry-picking distressed assets is cheaper than building pipeline. The bigger lesson: an approved drug is necessary but not sufficient — BioXcel burned through cash on commercial launch faster than Igalmi could generate returns, and Section 363 stalking-horse auctions are becoming the default off-ramp for single-asset biotechs that can't bridge to profitability.
Teva saddles up as stalking horse bidder for bankrupt BioXcel's neuroscience portfolio ↗
Lilly to Acquire Merida Biosciences in Up to $2.88B Autoimmune Deal
- Eli Lilly will acquire privately held Merida Biosciences for up to $2.88 billion, combining upfront and milestone payments; the deal is expected to close in Q4 2026.
- Merida engineers biologics that selectively degrade disease-causing autoantibodies, aiming to target the root biology of autoimmune and allergic disease rather than broadly suppress immunity.
- Lead candidate MER511 is in early-stage testing for Graves' disease and thyroid eye disease, with initial data pointing to reductions in thyroid-stimulating autoantibodies.
- The pipeline also includes MER769, a preclinical antibody targeting underlying allergy biology, with potential relevance to food allergy, asthma, and chronic urticaria.
- The deal is Lilly's 13th acquisition of 2026, extending an obesity/diabetes-funded buying spree into new autoimmune and allergy modalities.
Autoantibody degradation goes after a gap FcRn inhibitors like Vyvgart can't close — those broadly dial down IgG, this targets the specific rogue antibodies. If MER511's Graves' data hold, it's a cleaner mechanism story than another B-cell depleter. The structure says Lilly isn't paying for hope: milestone-heavy pricing on preclinical/Phase 1 assets pushes the risk onto Merida's team hitting data, not onto Lilly's balance sheet. $2.88B is reasonable for a validated new modality, rich if MER511 stalls. It slots next to lebrikizumab and mirikizumab without cannibalizing either. The real signal is deal #13 this year — Lilly's recycling GLP-1 cash into next-gen immunology and allergy bets while it still has the war chest to shop early.
Eli Lilly inks $2.88B Merida buyout for autoimmune drugs against rogue antibodies ↗