M&A Milestones Rarely Pay Off
Summary:
Since 2008, only 9.5% of promised life sciences deal milestones have been paid, per SRS Acquiom. Of $95B in potential payouts, just $9B materialized – mostly in the first two years and concentrated in a few top deals. With late-stage trial failures and rising disputes, experts say biotechs are wise to push for larger upfront payments.
Pfizer – Trump Drug Pricing Deal Heavy on Optics, Light on Impact
Summary:
Pfizer struck a deal with the Trump administration to extend “most favored nation” drug prices to state Medicaid programs and launch a direct-to-consumer discount site. The pact delays potential tariffs and includes a $70B R&D pledge, but details remain confidential. Analysts say the move is largely symbolic: Medicaid already receives steep discounts, most patients use insurance, and high-cost specialty drugs remain excluded.
Genmab Bets $8B on Merus Cancer Drug
Summary:
Genmab will acquire Dutch biotech Merus for $8B, gaining petosemtamab, a bispecific antibody showing strong Phase 2 results in head and neck cancer when paired with Merck’s Keytruda. Nearly 80% of patients were alive at one year in early testing, fueling hopes it could reshape treatment. A pivotal trial is underway, with results due in 2026. Analysts project the drug could reach $3 – 4B in annual peak sales, while Genmab expands its antibody-driven pipeline.
Star Therapeutics Secures $125M for Von Willebrand Drug
Summary:
Star Therapeutics raised $125M to advance VGA039, its antibody therapy for Von Willebrand disease, into Phase 3 trials. The drug, designed as a longer-lasting, subcutaneous preventive treatment, could address all forms of the bleeding disorder and leapfrog current factor replacement therapies. With backing from Sanofi Ventures and Viking Global, Star aims to position VGA039 as a Hemlibra-like breakthrough for Von Willebrand patients.
U.S. Science Braces for Government Shutdown
Summary:
With Congress deadlocked, federal agencies could shut down at midnight Tuesday, disrupting research across NIH, NSF, DOE, and NASA. While existing grants will still be paid, new awards, reviews, and funding calls will stall, agency staff will be furloughed, and many facilities may close if the shutdown drags on. Unlike past shutdowns, the White House has hinted it may use the pause to permanently cut some federally funded programs – raising fresh uncertainty for U.S. science.
