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The global biopharmaceutical sector saw a sharp 101% surge in merger and acquisition (M&A) deal value in Q1 2025, reaching $37.7 billion—up from $18.8 billion in Q4 2024—according to GlobalData’s Pharmaceutical Intelligence Center Deals Database. Despite the growth, total deal value remains 32% lower than in Q1 2024, as political and economic uncertainty in the U.S. continues to deter large-scale transactions. The quarter featured four major billion-dollar deals, including Johnson & Johnson’s $14.6 billion acquisition of Intra-Cellular Therapies, Novartis’ $3.1 billion buyout of Anthos Therapeutics, GSK’s $1.15 billion acquisition of IDRx, and AstraZeneca’s $1 billion purchase of EsoBiotec. These deals were largely driven by big pharma players, with a strategic focus on oncology—the leading therapeutic area for M&A activity in the quarter. Yet, industry players are showing restraint. Concerns stem from President Donald Trump’s proposed pharmaceutical tariffs, budget cuts to federal health agencies, and delays in U.S. FDA drug approvals. These factors are making large, high-risk deals less attractive and have prompted a rise in bolt-on acquisitions—smaller, lower-risk transactions that can add value without extensive exposure. The current environment is particularly challenging for smaller biotech firms, many of which face funding difficulties and may turn to M&As as a strategic lifeline. While some companies are adopting a “wait-and-see” approach pending clearer policy direction, others are hopeful that the Trump administration—known for deregulation in its previous term—will eventually loosen regulatory constraints, potentially reinvigorating large-scale deal-making. The outlook for biopharma M&As in 2025 remains mixed: growth is evident, but full momentum may depend on how U.S. policy evolves in the months ahead. For detailed insights, see GlobalData’s Pharma M&A Trends – Q1 2025 report. Source: pharmaceutical-technology.com

IBM CEO Arvind Krishna has revealed that the company’s move to replace segments of its Human Resources (HR) workforce with artificial intelligence (AI) tools has not resulted in job losses but instead led to expanded hiring in areas like programming, sales, and software engineering. Speaking to The Wall Street Journal, Krishna explained that automating routine HR tasks with AI has allowed IBM to reallocate resources toward growth-oriented, human-centric roles. IBM hasn’t disclosed when the HR restructuring took place, but Krishna emphasized that the company’s overall headcount has increased due to efficiency gains from automation. AI agents now handle tasks like resume screening, workforce data analysis, and standard communications, freeing up funds and capacity for hiring in functions requiring creativity, critical thinking, and human interaction. “Automation gave us the investment room to put into other areas,” Krishna said. “Our total employment has actually gone up.” He noted that while routine process work can be handled by machines, roles involving customer engagement and strategic thinking still require a human touch. This shift reflects a broader trend across industries where HR is evolving from a back-office function to a strategic partner. As companies adopt AI to streamline compliance, payroll, and administrative duties, HR professionals are increasingly being redeployed to focus on employee experience, talent development, and leadership planning. However, Krishna acknowledged potential concerns with such transitions, including ethics, transparency of AI decisions, and the need to reskill HR professionals. Still, IBM’s model positions automation not as a job killer, but as a catalyst for organizational transformation—provided it’s managed thoughtfully. Krishna also addressed external economic pressures, warning that larger impacts from trade tariffs could require more difficult decisions. Nonetheless, IBM’s AI-led HR overhaul may serve as a blueprint for companies balancing cost-cutting with future-ready workforce strategies. Source: peoplematters