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Acquisitions, Licensing Deals Take Centerstage in Pharma/Biotech Space

Acquisitions, Licensing Deals Take Centerstage in Pharma/Biotech Space

Globe and Mail2 days ago

Mergers and Acquisitions (M&A) have picked up significant pace in 2025 in the pharma/biotech sector after a passive run in 2024.
The recent spree of acquisitions signifies a focus on portfolio expansion and constant pipeline innovation, given the changing landscape and spotlight on AI-driven drug discovery. Simultaneously, bigwigs in the space also enter into licensing deals and collaborations for a promising drug/candidate to strengthen and expand their portfolios in their respective core areas.
Quick Take on Recent Acquisitions & Deals
Pharma giant Sanofi SNY recently announced that it will acquire Blueprint Medicines for a total deal value of up to $9.5 billion to expand its portfolio in rare immunological disease and add an early-stage pipeline in immunology.
The impending acquisition will add Blueprint Medicines' only marketed product, Ayvakit (avapritinib), an inhibitor of KIT and PDGFRA proteins, to Sanofi's commercial portfolio.
Bristol Myers Squibb BMY recently announced a strategic collaboration agreement with BioNTech for the global co-development and co-commercialization of the latter's investigational bispecific antibody BNT327 across numerous solid tumor types.
BNT327, a next-generation bispecific antibody candidate, targets PD-L1 and VEGF-A. Per the terms, BMY will make an upfront payment of $1.5 billion to BioNTech. In addition, BioNTech will also receive $2 billion in non-contingent anniversary payments through 2028.
Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has lately been one of the lucrative areas in cancer treatment, attracting other pharma giants as well. In May 2025, Pfizer inked a licensing agreement with 3SBio for the development, manufacturing and commercialization of SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, outside China.
While oncology and immuno-oncology companies have always been at the top of acquisition targets, the lucrative obesity sector and gene-editing space are also being eyed.
Last week, Regeneron REGN entered into an in-licensing agreement for an obesity drug with Hansoh Pharmaceuticals Group Company Limited, in a bid to expand its clinical-stage obesity portfolio. The licensing agreement with Hansoh Pharma provides Regeneron with HS-20094, a GLP-1/GIP receptor agonist.
M&A in Focus in 2025
Consolidation has long been a central focus in the pharma/biotech industry. This is because leading companies constantly look to diversify their revenue base in the face of dwindling sales of their high-profile drugs. Acquisitions also make sense as developing a drug/technology from scratch is costly and risky.
In April, pharma giant Johnson & Johnson acquired Intra-Cellular Therapies for approximately $14.6 billion and added antidepressant drug, Caplyta, to its neuroscience portfolio.
Swiss pharma bigwig Novartis NVS, too, has been on an acquisition spree.
Novartis is all set to acquire San Diego-based clinical-stage biopharmaceutical company Regulus Therapeutics to strengthen its renal disease portfolio.
Regulus' lead asset, farabursen, is a potential first-in-class, next-generation oligonucleotide targeting miR-17 for the treatment of autosomal dominant polycystic kidney disease.
In April, Germany-based Merck KGaA announced that it will acquire SpringWorks Therapeutics, Inc. for $3.9 billion to expand business in the United States. SpringWorks Therapeutics, a U.S.-based biopharma company, has a portfolio that comprises a first-in-class, systemic standard-of-care therapy in adults with desmoid tumors and the first and only approved therapy for adults and children with neurofibromatosis type 1-associated plexiform neurofibromas.
Potential Deals
We expect M&A activity to accelerate further in 2025, given the massive cash reserve owned by major pharma and biotech companies.
These companies will also look to utilize innovative technology to develop breakthrough treatments rapidly as the landscape evolves. Moreover, smaller biotechs often lack the necessary funds to successfully develop a drug and commercialize thereafter. The recent spotlight on the usage of AI technology for drug discovery should lure investment in this industry.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report
Sanofi (SNY): Free Stock Analysis Report
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New U.S. vaccine panel includes members who have criticized vaccines and spread misinformation
New U.S. vaccine panel includes members who have criticized vaccines and spread misinformation

CTV News

time37 minutes ago

  • CTV News

New U.S. vaccine panel includes members who have criticized vaccines and spread misinformation

Dr. Robert Malone gestures as he stands in his barn on his horse farm July 22, 2020, in Madison, Va. (AP Photo/Steve Helber, File) NEW YORK — U.S. Health Secretary Robert F. Kennedy Jr. on Wednesday named eight new vaccine policy advisers to replace the panel that he abruptly dismissed earlier this week. They include a scientist who researched mRNA vaccine technology and became a conservative darling for his criticisms of COVID-19 vaccines, a leading critic of pandemic-era lockdowns, and a professor of operations management. Kennedy's decision to 'retire' the previous 17-member Advisory Committee on Immunization Practices was widely decried by doctors' groups and public health organizations, who feared the advisers would be replaced by a group aligned with Kennedy's desire to reassess — and possibly end — longstanding vaccination recommendations. On Tuesday, before he announced his picks, Kennedy said: 'We're going to bring great people onto the ACIP panel – not anti-vaxxers – bringing people on who are credentialed scientists.' The new appointees include Vicky Pebsworth, a regional director for the National Association of Catholic Nurses, who has been listed as a board member and volunteer director for the National Vaccine Information Center, a group that is widely considered to be a leading source of vaccine misinformation. Another is Dr. Robert Malone, the former mRNA researcher who emerged as a close adviser to Kennedy during the measles outbreak. Malone, who runs a wellness institute and a popular blog, rose to prominence during the COVID-19 pandemic as he relayed conspiracy theories around the outbreak and the vaccines that followed. He has appeared on podcasts and other conservative news outlets where he's promoted unproven and alternative treatments for measles and COVID-19. 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Most people on the current list 'don't have the technical capacity that we would expect out of people who would have to make really complicated decisions involving interpreting complicated scientific data.' He said having Pebsworth on the board is 'incredibly problematic' since she is involved in an organization that 'distributes a lot of misinformation.' Kennedy made the announcement in a social media post on Wednesday. The committee, created in 1964, makes recommendations to the director of the Centers for Disease Control and Prevention. CDC directors almost always approve those recommendations on how vaccines that have been approved by the Food and Drug Administration should be used. The CDC's final recommendations are widely heeded by doctors and guide vaccination programs. 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Prediction: This Artificial Intelligence (AI) Stock Could Be the Next Nvidia -- and It's Not What You Think
Prediction: This Artificial Intelligence (AI) Stock Could Be the Next Nvidia -- and It's Not What You Think

Globe and Mail

time37 minutes ago

  • Globe and Mail

Prediction: This Artificial Intelligence (AI) Stock Could Be the Next Nvidia -- and It's Not What You Think

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Better Energy Stock: TotalEnergies vs. Chevron
Better Energy Stock: TotalEnergies vs. Chevron

Globe and Mail

timean hour ago

  • Globe and Mail

Better Energy Stock: TotalEnergies vs. Chevron

For investors, choosing between two similar companies to add to a portfolio can be a challenging process. Chevron (NYSE: CVX) and TotalEnergies (NYSE: TTE) offer a great example of this. Both are integrated energy giants. Both stocks offer high yields. But they have slightly different positive and negative attributes. So which one might be the better fit for your dividend portfolio? What do Chevron and TotalEnergies do? As integrated energy companies, Chevron and TotalEnergies have operations in the upstream segment (oil and natural gas production), the midstream segment (energy transportation), and the downstream segment (chemicals and refining). Each part of the energy industry operates a little differently from the others, and having exposure across all of them helps soften the impacts that volatile commodity prices can have on their results. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Oil and natural gas prices are still the main driver of each company's financial results, and have huge impacts on their stock prices. But compared to pure-play drillers or chemical companies, Chevron and TotalEnergies tend to get through the typical energy cycle more easily. Each of these companies also has material geographic diversification. That said, Chevron is a U.S. company and it tends to have more exposure to its home market. TotalEnergies is a French company and it tends to have more exposure to Europe. Overall, however, the energy businesses are fairly similar. But these two companies are not interchangeable. That is highlighted by the fact that at their current share prices, Chevron's dividend yield is 4.8% and TotalEnergies yield is 6.5%. And the differences matter here. How are Chevron and TotalEnergies different? If you are an income investor, you'll be interested to know that Chevron has increased its dividend annually for 38 consecutive years. That's an impressive record given the inherent volatility of the energy sector. TotalEnergies's track record isn't as impressive, but it has gone through different dividend policies. Like most European companies it was a semi-annual payer before more recently shifting to quarterly payments. And for a stretch it targeted a set percentage of free cash flow, which meant its dividend varied. However, it has paid dividends for decades and more recently has focused on a progressive dividend, meaning it has been steadily increasing its payouts of late. Notably, however, when its European peers BP and Shell cut their dividends in 2020, TotalEnergies maintained its dividend, with management specifically stating that it was aware of the importance of the payment to its shareholders. On dividend reliability, Chevron wins, but TotalEnergies isn't exactly a bad deal. Chevron's balance sheet is among the strongest of its closest peer group, with a debt-to-equity ratio of around 0.2. TotalEnergies' debt-to-equity ratio is 0.5. That's much higher, of course, but TotalEnergies carries more debt and more cash. For example, Chevron ended the first quarter of 2025 with around $4.6 billion in cash on its balance sheet while TotalEnergies had $29 billion. Having less debt is better than having more debt and more cash, but TotalEnergies is still a financially strong company. This point is probably a wash. TotalEnergies is making a public push to use its fossil fuel profits to expand into the electricity space, with a focus on renewable power. This part of the business made up around 10% of its adjusted net operating income in 2024. Chevron is sticking more closely to its core oil and natural gas operations. If you are looking for an energy company that is adjusting today for a future world that relies more on clean energy, TotalEnergies is the easy winner. To be fair, BP and Shell have both discussed doing something similar. But they each used a clean energy shift as the excuse for their 2020 dividend cuts. Then, they both walked back their clean energy plans. TotalEnergies actually made the change and didn't resort to a dividend cut. So it stands out from Chevron, BP, and Shell when it comes to renewable energy. Which one will you pick? Chevron is facing some company-specific issues right now, including an acquisition that isn't going as well as hoped and some geopolitical upheaval around its operations in Venezuela. That's why its yield is so attractive relative to U.S. peer ExxonMobil, which has a yield of just 3.8%. TotalEnergies' dividend yield isn't quite as good as it looks, meanwhile, because U.S. investors have to pay French fees and taxes on it (though some of that can be claimed back come April 15). All in all, there are a lot of positives and negatives to consider with these two high-yield integrated energy giants. My preference is to err on the side of clean energy since the world is clearly in the middle of an energy transition. Add in the lofty yield and management's dividend support during the pandemic, and it's clear that TotalEnergies is a better fit for my portfolio based on my general beliefs about the future of the energy sector and income desires. But there's a strong case to be made for investing in Chevron, too, particularly if you prefer to keep your taxes as simple as possible and if you prize dividend consistency as much as dividend yield. Should you invest $1,000 in Chevron right now? Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chevron wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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