Life sciences M&A roundup: August 2024

It's been a busy month for life sciences M&A, with a notable focus on smaller deals over blockbusters. Key themes throughout August include: 

• exciting developments in the space of AIDD

• drugs addressing big patient populations remain in vogue

• another medtech acquisition for JNJ.

Our life sciences M&A deal of the month goes to Recursion and Exscentia in their announced combination creating a global techbio powerhouse focused on technology-enabled drug discovery. This transatlantic merger brings together $850 million in balance sheet value, over US$100 million in synergies and a complementary pipeline with approximately ten clinical readouts expected over the next 18 months. The merger follows a period of challenge within the industry as to whether the benefits of AI in the drug discovery process can be truly achieved, and it will be interesting to see whether this kicks off further consolidation. The AI wave is having its moment of rejuvenation and, by way of reminder, Boston Consulting Group (BCG)'s excellent paper on how AI-developed candidates have been faring in clinical trials is well worth a read - see here.

Other notable deals that caught our eye included:

• Otsuka Pharmaceutical Co., Ltd.'s acquisition of Jnana Therapeutics for $800m with a further $325 million in R&D and regulatory milestones for Jnana's novel chemoproteomics drug discovery platform.

• Merck (MSD) agreed to buy Curon Biopharmaceutical's B-Cell depletion therapy for up to $1.3 billion. 

• Skincare was in the spotlight with the acquisition of Revanance Therapeutics by Crown Laboratories for a total enterprise value of $934 million.

• Danish drugmaker Pharmacosmos will acquire G1 Therapeutics for c. $405 million principally for its flagship drug Cosela which helps ease chemotherapy's harmful effects on bone marrow.

• Within medical devices, Johnson & Johnson agreed to buy V-Wave for an upfront payment of $600 million with potential milestone payments of up to c. $1.1 billion. V-Wave has been developing a minimally invasive interartrial shunt designed to treat heart failure. 

• A shout out to Mindwaves Ventures for its sale of Maia, a digital health company focused on mental health and community support, to DrDoctor, making its first foray into this space and seeking to integrate integrated care boards (ICBs) in England to cross both areas and giving mental health the same attention as physical health.

We’re also excited about Zurich-based redalpine’s successful $200 million fundraising close and new London office - a testament to growing interest in UK tech and life sciences innovation. We are thrilled to welcome another investment fund to the ecosystem.

As autumn shapes up to be active, feel free to reach out if you any questions on either fundraising, M&A or international expansion!