Mergers and acquisitions (M&A) in America’s life sciences industry not only play a critical role in bringing new breakthroughs to patients, but also strengthen state economies across the country. Life sciences M&A plays a pivotal role in fueling innovation, creating jobs and attracting long-term investment to local communities.
Life sciences companies of all sizes count on M&A to be able to access the resources they need to successfully innovate and bring a new breakthrough to patients. Case in point: life sciences R&D spending across the country increased dramatically in 2024 as the number of medium-sized M&A deals nearly doubled. From New Jersey to Maryland to Michigan, M&A activity across the life sciences industry drives investment within local economies while delivering innovative new medicines to patients.
Long known as the “Medicine Chest of the World,” New Jersey is home to a blend of homegrown life science leaders and cutting-edge biotech startups.
- New Jersey’s life sciences sector contributes $120.9 billion in total impact to the state’s economy each year–– equivalent to 16% of the state’s gross domestic product.
- New Jersey’s life sciences industry supports employment for over 116,000 people, with an average wage of $172,977—more than double the state’s private-sector average. These high-paying jobs generate meaningful economic ripple effects, from real estate to retail to research institutions.
- Notable M&A success stories include Medarex and Celgene—two New Jersey biotech companies that merged with Bristol Myers Squibb (in 2009 and 2019, respectively), helping bring groundbreaking cancer therapies to patients worldwide.
Robust partnerships have propelled Maryland to the forefront of treating diseases––from cancer to rare genetic conditions and more.
- Maryland is home to more than 2,700 life sciences establishments, employing a collective 54,000 Marylanders in high-wage jobs.
- The 2020 acquisition of Alexion Pharmaceuticals by AstraZeneca helped make a breakthrough treatment for a rare genetic blood disease available to patients around the world. Simultaneously, this deal drove significant investment in Maryland-based R&D to develop new treatments and cures for many other rare diseases.
M&A has driven a vibrant life sciences ecosystem in Michigan, in turn helping to bring life-changing new medicines to patients around the world.
- Michigan is home to over 3,300 life sciences establishments of all sizes working to bring transformative medicines to market, employing more than 47,000 people across the state.
- Michigan’s life sciences industry contributes more than $55 billion in annual economic value to the state’s economy.
- Several mergers, including with Pfizer in 2000, allowed Detroit-based Parke-Davis and Company to expand the global distribution of Lipitor––helping to make this cholesterol medication one of the most frequently prescribed therapies worldwide.
Life sciences M&A is more than a financial transaction—it’s a force multiplier for local economies. In New Jersey, Maryland, Michigan, and across the country, these deals are helping reshape the economic landscape and attract investment, while supporting U.S. leadership in biomedical innovation. For these reasons, it’s critical that policymakers preserve a regulatory environment that encourages pro-competitive M&A activity and avoids stifling the very deals that bring cutting-edge treatments and economic opportunity to American communities.