Biopharma's Big Bets on CNS Drug Development: 2024 Acquisitions and 2025 Outlook

CNS neuroscience continues its emergence as one of the hottest areas in biopharma, with increasing private investment and growing industry interest. 2024 was another banner year for M&A in CNS drug discovery and development.? Major pharma acquisitions should be seen as strategic moves underscoring the growing interest in neurological and psychiatric conditions and the potential for innovative therapies to address these significant unmet medical needs.

Key 2024 Acquisitions:

• AbbVie acquired Aliada Therapeutics for $1.4 billion: This deal bolsters AbbVie's pipeline with Aliada's focus on neurological disorders, notably its lead program for the rare disease spinocerebellar ataxia type 3.
• 百时美施贵宝 's (BMS) $14 billion cash acquisition of Karuna Therapeutics : The year's largest CNS-focused acquisition saw BMS acquire Karuna, gaining its promising schizophrenia drug, KarXT, and strengthening its neuropsychiatry portfolio.? A major indicator of growing industry interest in neuropsychiatry.
• Lundbeck took Longboard Pharmaceuticals private for $2.6 billion: Lundbeck's acquisition of Longboard added promising migraine and epilepsy treatments to its pipeline, reinforcing its commitment to neurology. ?

2025 M&A Trends in CNS Biopharma:

Building on the momentum of 2024, several key trends are likely to shape M&A activity in CNS biopharma in 2025:

Early and Pre-clinical Stage Interest:

• Novel drug targets: Don't be surprised to see acquisitions of companies with promising pre-clinical programs targeting novel pathways and mechanisms, particularly those addressing neuroinflammation, neurodegeneration, going beyond traditional targets and approaches.? We’ll be diving directly into this at Bio-Neuroscience 2025 - don’t miss it.
• Gene therapy and RNA-based therapies: Companies developing gene therapies or RNA-based approaches for CNS disorders, particularly for rare genetic conditions, are likely to be attractive targets. Make sure to follow @Broadreach Global if you want to stay on top of key innovations and engage with leading companies in this space.
• Disease-modifying therapies: There is a growing interest in disease-modifying therapies for neurodegenerative diseases like Alzheimer's and Parkinson's, even at early stages of development.? Expect to see some surprising deals.

Clinical Stage Interest:

• Late-stage clinical assets: Acquisitions will continue to focus on companies with late-stage clinical programs (Phase 2b or later) demonstrating strong efficacy and safety data, offering a faster path to market.
• Neuropsychiatric therapies: The FDA approval of KarXT and the increasing prevalence of mental health conditions will drive further interest in and acquisitions of companies developing novel therapies for schizophrenia, depression, bipolar disorder, and anxiety.?For an overview of the neuropsychiatric drug development landscape, see this recent paper by Simon LOIODICE , to which Broadreach Global was honorex to contibute.
• Precision medicine approaches: Companies developing therapies with companion diagnostics or biomarkers to identify patient subgroups most likely to benefit will be highly sought after.

Looking Ahead:

The dynamic M&A landscape in CNS biopharma underscores industry's growing interest in and commitment to developing innovative treatments for neurological and psychiatric conditions.? In 2025, we can anticipate further strategic acquisitions as pharmaceutical companies continue to leverage external innovation to advance their pipelines and address the significant unmet needs in this therapeutic area. Of course, none of this would happen without the impressive community of neuroscience drug development researchers and innovative, high potential startups and growth companies.

Join Us at Bio-Neuroscience 2025!

Follow Broadreach Global to stay updated on key companies, investments, deals and trends. For unparalleled insights and to engage with key stakeholders driving the business of CNS neuroscience drug development, innovation, don't miss Bio-Neuroscience, February 25-27 in Amsterdam. The ultimate curated summit of key stakeholders with 200 CEOs from the top startups, private and public companies, pharma leaders and decision-makers, and top investors at the forefront of CNS innovation. Be part of the conversation shaping the future of CNS drug development!

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