Susan Haigney

Industry Outlook 2025: Mergers, Acquisitions, and Funding

According to Erik Wiklund, CEO of Circio, the bio/pharmaceutical industry has seen a trend toward fewer, but larger mergers and acquisitions. During the COVID-19 pandemic, biotechs had ample access to venture capital and public funding; however, since the pandemic, capital has dried up, as valuations have plummeted and investors have lost money. In addition, a looming patent cliff is also straining revenue expectations.

“Both of these forces can converge into larger and later-stage deals, so investors are likely to buy into later-stage de-risked programs with clinical validations, Stage II, Stage III, [with a] clear path to approval, and that's probably where the M&A deals are and will continue to happen,” Wiklund says. “Investors are looking for lower-risk assets with a clear development path closer to the clinic. Unfortunately, for a company like ours, which is building a really exciting new gene therapy technology platform, it has become difficult to fundraise in the current environment. This forces companies like Circio to prioritize asset generation, picking a track and going deep in one single area, rather than to scientifically develop the platform to its full potential which would have been the standard strategy three years ago, where Big Pharma and investors were looking for technology platforms with broad therapeutic potential.”

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Erik Wiklund, PhD, is CEO of Circio. He has deep scientific knowledge in RNA and cancer biology, and 13 years of pharma and biotech industry experience in a variety of functions including R&D, finance, and business development. Previous employment includes the radiopharmaceutical company Algeta, which was acquired by Bayer in 2014, Aker Biomarine, and management consulting experience from the Pharma & Health Care practice of McKinsey & Company. Wiklund holds a PhD in Molecular Biology from Aarhus University, Denmark, and the Garvan Institute of Medical Research, Sydney, Australia

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Pharmaceutical Technology® Group spoke with Erik Wiklund, CEO of Circio, about the future of M&A in the bio/pharmaceutical industry and the struggle small biotech companies face raising funds.

Industry Outlook 2025: The Impact of Politics on Pharma

The political landscape is evolving and unpredictable at the moment, according to Edwin Stone, CEO of Cellular Origins, and the development of an inward focus by the United States might have a negative impact on the development and manufacturing of emerging treatments. Collaboration when tackling complex biology to treat complex diseases is necessary between the US, Europe, and beyond, says Stone.

“For a long time, I've always been hopeful and optimistic, and frankly, my confidence is a little shaken now that Asia, and particularly China, can be bought into the fold,” Stone says. “There's an awful lot going on in advanced therapies in China that we do not see in Europe or the US, and similarly, vice versa. Unfortunately, it looks like in the immediate term, we may see a backing off on that. Now, what we don't know is how much narrative transfers into reality there. And there is some suggestions, I think, that perhaps actually the reality will be a bit more tempered, some saber rattling and some strong signals early on to get some positioning. And hopefully, actually what we're seeing is a level of pragmatism come into that, because I really am a great believer that for the sort of problems we attack on now, if we work together, we'll have a chance to actually move these things forward and move these things forward a lot quicker. And let's remember this is for the benefits of patients and for people. It is not just about profits.”

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The PharmTech Group interviewed Edwin Stone, CEO of Cellular Origins, about the impact of the changing political landscape on the pharmaceutical industry.

Alexander Seyf, CEO and Co-Founder of Autolomous

Alexander Seyf, CEO and co-founder of Autolomous, sees the advancement of artificial intelligence (AI) and machine learning (ML) as tools to support pharmaceutical scientists and manufacturers in their work.

“AI and ML can help us to do the leg work, but the main work is going to need to be done by our own brain, but by human being,” Seyf insists. “I think it will be more segregation of mechanical work rather than intellectual work. And for identifying the progression of biology and the discovering the different solutions for different diseases, you've seen an amazing trend today. There are companies in the United States that we're looking at using off-the-shelf drugs for different indications that it was not intended from beginning. And I believe that's a huge, huge progression in the right direction. And for drug discovery, we're going to look at cross fertilization, of what we have already enhanced for the solution to the diseases that we don't have any treatment for. So, we will see examples of that practically, ML and AI can help us to progress the pharma and other industries, for that matter, more in the right direction.”

Alexander Seyf is CEO and Co-Founder of Autolomous.

Pharmaceutical Technology® spoke with Alexander Seyf, CEO and co-founder of Autolomous, about the use of artificial intelligence and machine learning in pharmaceutical development and manufacturing.

Industry Outlook 2025: Technology as a Supporting Element

TOP NEWS on grunge world map | Image Credit: © Sean K - © Sean K - stock.adobe.com

Novartis announced on April 10, 2025 the expansion of its manufacturing and R&D presence in the United States with the investment of $23 billion during the next five years. The company will build seven new facilities, bringing production of 100% of its key products to the US. Novartis will also create a new research hub in San Diego to increase R&D activities in the US.

In addition to the seven new facilities, three current sites will be invested in and approximately 1000 new jobs will be created at Novartis with an additional 4000 jobs in the US. Production capacity will be increased for APIs, biologics, and secondary production and packaging.

During the next five years, Novartis will create its second R&D hub in the US, to be located in San Diego; build four new manufacturing facilities, three of which will be dedicated to biologics manufacturing; build two new radioligand therapy (RLT) facilities to be located in Florida and Texas; and expand three of its RLT facilities in Indianapolis, Ind., Millburn, NJ, and Carlsbad, Calif. This investment creates manufacturing capacity of all the company’s core technology platforms in the US, including manufacturing of Novartis’ small interfering RNA (siRNA) technology, allowing for end-to-end production in the US.

"As a Swiss-based company with a significant presence in the US, these investments will enable us to fully bring our supply chain and key technology platforms into the US to support our strong US growth outlook. These investments also reflect the pro-innovation policy and regulatory environment in the US that supports our ability to find the next medical breakthroughs for patients," said Vas Narasimhan, CEO of Novartis, in a press release (1). "We are prepared for shifts in the external environment and fully confident in our 2025 guidance, mid- to long-term sales growth outlook and 2027 core margin guidance of 40%+."

The new research hub in San Diego, a $1.1 billion investment, will be a state-of-the art research facility with scientific infrastructure and drug discovery capabilities. The facility is planned to open between 2028 and 2029 and will serve as the epicenter of the Novartis West Coast Biomedical Research capabilities. The company has complementing hubs in Cambridge, Mass. and Basel, Switzerland.

In February 2025, Novartis announced another investment: a new viral vector production facility in Mengeš, Slovenia, the first specialized viral vector manufacturing facility in Europe. By investing €40 million (US$43 million) in the facility, the company expanded its research and production capabilities in the biopharmaceutical market (2).

Novartis also announced its potential purchase of Anthos Therapeutics, a Boston clinical-stage biopharmaceutical company, in February 2025. The pending acquisition has an upfront price of $925 million and includes abelacimab, a human monoclonal antibody in late-stage development for the prevention of stroke and systemic embolism in patients with atrial fibrillation (3).

“We are excited to join forces to advance the development of abelacimab, a potential first-in-class treatment and safer approach for stroke prevention in atrial fibrillation as well as cancer-associated thrombosis,” Shreeram Aradhye, MD, president, Development and chief medical officer, Novartis, said in the press release announcing the acquisition (3). “Welcoming Anthos Therapeutics strengthens our focus in the cardiovascular space and complements our portfolio of life-changing treatments, comprehensive clinical programs, and strategic collaborations that help thousands of patients with heart disease around the world.”

Novartis. Novartis Plans to Expand its US-Based Manufacturing and R&D Footprint with a Total Investment of $23B Over the Next 5 Years. Press Release. April 10, 2025.

In Slovenia, Novartis Opens Its First Specialized Viral Vector Production Facility in Europe

Novartis. Novartis Bolsters Late-Stage Cardiovascular Pipeline with Agreement to Acquire Anthos Therapeutics for USD 925 Million Upfront. Press Release. Feb. 11, 2025.

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The company has plans to invest $23 billion during the next five years to expand manufacturing and R&D in the US, which will include seven new facilities.

Novartis to Expand US-Based R&D and Manufacturing

Industry Outlook 2025: Talent Up for Grabs

The post-COVID-19 era has seen the consequences of ambitious programs launched during the pandemic, according to Erik Wiklund, CEO of Circio, such as a lack of capital for small biotech and employee layoffs, and Wiklund sees this impacting the industry during 2025. “Many companies launch great ambitions, large valuations. People flow into the industry, and then the breaks set in, but then what happens is that the companies that survive, they then suddenly have access to a broad talent pool, and then the capital comes back,” Wiklund says. “So, I think the consequence of that is that you see some consolidation. You see access to talent, and you see new stronger companies emerge, and maybe that's what will happen now. After the reset in biotech, a broad set of companies are gone, but this may create fertile ground for the future successes once the capital markets and the industry start to normalize, and hopefully this will happen during 2025.”

This increase in available talent is a trend that Wiklund sees continuing in the coming year. “What we've seen is that there's been increasing cost levels in the [United States] in particular, strong dollar and increasing inflation has driven up prices,” Wiklund says. “Salaries are high, and I think that, to a certain degree, is starting to make European or other companies look elsewhere for development opportunities. It's become cheaper by comparison to develop drugs in Europe, Asia, and Australia, and I think maybe if that trend continues with a strong US economy and increasing prices, then you may see that kind of European, eastwards-oriented trend continuing.”

Erik Wiklund, PhD, is CEO of Circio. He has deep scientific knowledge in RNA and cancer biology, and 13 years of pharma and biotech industry experience in a variety of functions including R&D, finance and business development. Previous employment includes the radiopharmaceutical company Algeta, which was acquired by Bayer in 2014, Aker Biomarine, and management consulting experience from the Pharma & Health Care practice of McKinsey & Company. Wiklund holds a PhD in Molecular Biology from Aarhus University, Denmark, and the Garvan Institute of Medical Research, Sydney, Australia

Pharmaceutical Technology® Group spoke with Erik Wiklund, CEO of Circio, about the impact of the post-COVID-19 world on the pharmaceutical industry and how that has shifted the talent pool.

Industry Outlook 2025: Cell Therapy Advancement

Edwin Stone, CEO of Cellular Origins, sees two themes having the biggest impact to the bio/pharma industry: the expansion of glucagon-like peptide-1 (GLP-1) and the growth of cell therapies from fourth- and third-line treatments to second-line treatments. “It really opens up that question of, when do we start to see first line treatments? And of course, part of that comes down to not just the safety and efficacy profiles, but the cost of goods, which still no one has a good answer to,” Stone says. “So, I think that really links the two parts that we've seen through this year, the GLP-1 and advanced therapies really all come down to that manufacturing piece.”

“The other big thing on cell therapies that I think has been really important this year, and I think really hopefully points to future … moving now into new indications, particularly solid tumor. Again, we don't have to go back that far for there to be real questions with Iovance’s approval in that space and then later Adaptimmune. Solid tumors now are right [on] the cutting edge of where cell therapies are at, and I think that gives great excitement for their potential. Again, we're going to need to make sure we can show that we can manufacture those,” Stone adds.

Stone also sees messenger RNA, the diversity of biologics, and new biological mechanisms as areas to pay attention to for the future of the industry. “I think the thing … we're perhaps just at the start of now, is being able to really broaden our ability to harness biology to go after diseases that we previously haven't been able to tackle. And of course, that's incredibly exciting,” Stone says.

The PharmTech Group interviewed Edwin Stone, CEO of Cellular Origins, about the bio/pharmaceutical trends from 2024 that continue to impact the industry in 2025.