PwC Anticipates Friendlier Environment For M&A In 2025

As it predicted heading into 2024, PwC sees positive conditions for merger-and-acquisition deals in the life sciences and says headwinds that held down 2024’s activity are neutralizing.

PwC predicts a positive environment for M&A in 2025 (Shutterstock)

Analysts at PwC expect dealmaking in the life sciences sector to pick up in 2025, but they predict more of the kind of dealmaking that the biopharma industry has favored in recent years, such as bolt-on acquisitions, not a re-emergence of major merger activity.

Key Takeaways
  • PwC predicts a business atmosphere more conducive to M&A in 2025 due to multiple factors, including the outcome of the 2024 presidential election.
  • The group also predicted a healthy year for M&A heading into 2024, but said headwinds that affected this year’s activity, such as inflation and interest rate spikes, seem to be neutralizing

In its Pharmaceutical and Life Sciences: US Deals 2025 Outlook report, the consultant group predicts “sustained activity” for merger-and-acquisition transactions valued at between $5bn and $15bn next year, even though there have been no such combinations valued as high as $5bn within the biopharmaceutical sector so far in 2024

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