FUSION PHARMACEUTICALS

Big Pharma anticipates increased M&A activity in 2025, driven by patent expirations of key drugs like Keytruda and Eliquis. Companies are focusing on obesity, immunology, oncology, and cardiovascular drugs for growth. Acquisitions aim to fill revenue gaps and capitalize on emerging markets, with obesity expected to be a $100-$150 billion market.

The drug and biotech industry faced challenges due to political appointments, sales disappointments, and pipeline setbacks but is expected to recover by 2025. Innovation in rare diseases, oncology, obesity, and neuroscience drives growth. Eli Lilly, J&J, AbbVie, AstraZeneca, and Pfizer are key players to watch.

McMaster researchers achieved breakthroughs in health, sustainability, AI, and climate justice in 2024, addressing challenges like antibiotic resistance, cancer, and climate change, while also advancing ethical AI use and Indigenous research.

AstraZeneca, a leading biopharmaceutical company, is advancing in oncology with recent approvals and positive trial results, including Enhertu for breast cancer. With a strong financial performance and a diverse pipeline, it aims for over $80 billion revenue by 2030, despite facing competition and regulatory challenges.

GLP-1 drugs like semaglutide and tirzepatide have expanded uses beyond diabetes and weight loss, potentially treating cardiovascular disease, kidney disease, anxiety, depression, and substance use disorder. CRISPR drugs Casgevy for sickle cell disease and β-thalassemia entered the market, though uptake is slow due to complex treatment processes. Protein-folding algorithms by Baker, Hassabis, and Jumper revolutionized biochemical research and pharmaceutical applications. ADCs received significant investment, with firms exploring new linker chemistries. Amylyx Pharmaceuticals pulled an ALS drug after trial failure, continuing research for other uses. Kelly Chibale called for recognizing African scientific potential. Virologists monitored H5N1, mpox, and Marburg outbreaks, with ongoing research and emergency measures. Radiopharmaceuticals saw increased investment and market growth. Evidence suggests vaccines like shingles and flu jabs may protect against dementia.

Companies are developing radiolabeled antibody-drug conjugates (rADCs) to target cancer cells directly, reducing side effects and treatment times. rADCs, which use antibodies to deliver radiation to cancer cells, are seen as an emerging modality in oncology. Despite challenges like supply and delivery hurdles, clinical trials are progressing, with promising interim results and FDA orphan drug designations.

The FTC's 2023 revised merger guidelines impact pharmaceutical industries with stricter HHI and market share requirements, emphasizing direct evidence of market dominance and ecosystem competition. The FTC scrutinizes pharmaceutical mergers for market concentration, innovation, and entry barriers, with ongoing investigations into Novo Nordisk/Catalent and AbbVie/Cerevel mergers. The EC investigates Zoetis for potential abuse of dominance post-merger, and the FTC challenges fraudulent patents to prevent market monopolization. Pharmaceutical companies are increasingly merging with biotech firms to offset patent expirations and enhance product portfolios.

The global oncology precision medicine market was valued at USD 53.2 billion in 2023 and is expected to grow at a 10.4% CAGR from 2024 to 2032, driven by rising cancer incidence and increasing demand for personalized therapies. Key segments include breast cancer, oral administration, small molecules, and kinase inhibitors. North America leads in market share, with the U.S. accounting for USD 19.7 billion in 2023. Prominent companies include AbbVie, AstraZeneca, and Pfizer, with recent strategic acquisitions enhancing their oncology portfolios.

Recent acquisitions of cancer drug developers RayzeBio and Fusion Pharmaceuticals highlight radiotherapy's resurgence. Oncology sees advancements in genetics, immunology, AI, and personalized treatments. Funding remains robust, with potential for highest corporate rounds since 2021. Combination therapies and AI are crucial, with cancer vaccines and precision treatments offering hope. Despite challenges, progress in treating specific cancers has improved patient outcomes.

The drug and biotech industry thrives on M&A, new drug launches, and pipeline successes, with obesity drugs from Novo Nordisk and Eli Lilly leading. Large drugmakers like Eli Lilly, AstraZeneca, Pfizer, Sanofi, and Bayer are profitable and innovative, focusing on areas like weight loss, inflammation, and Alzheimer’s. Despite headwinds such as pipeline setbacks and macroeconomic uncertainty, investment in drug/biotech stocks has surged. The Zacks Large Cap Pharmaceuticals industry ranks in the top 19% of Zacks industries, outperforming the Zacks Medical Sector but slightly underperforming the S&P 500.