GLP-1 Receptor Agonists: The Surge of M&A Activity and the Future of Metabolic Health

Over the past decade, the global pharmaceutical industry has witnessed a transformation in the treatment landscape for metabolic disorders, particularly type 2 diabetes and obesity. At the heart of this shift is the explosive rise of GLP-1 receptor agonists, once a niche therapeutic class, now a multi-billion-dollar market shaping the future of chronic disease management. With this surge in clinical and commercial success, the GLP-1 technology space has become a hotbed for mergers and acquisitions (M&A), as major pharma players race to secure their foothold in what many consider the next blockbuster category.

This post explores the strategic drivers, recent deals, and future implications of M&A activity in the GLP-1 sector, unpacking why this field has become a focal point for investment, innovation, and consolidation.

GLP-1: From Diabetes Therapy to Weight Loss Powerhouse

Originally developed to help manage blood sugar in type 2 diabetes, GLP-1 receptor agonists have evolved beyond their initial indications. These drugs mimic the glucagon-like peptide-1 hormone, which enhances insulin secretion, suppresses glucagon, and slows gastric emptying. What made them revolutionary was their ability to induce weight loss, a feature that has become a cornerstone in the battle against obesity, a condition with vast medical, social, and economic implications.

The commercial success of drugs like Novo Nordisk’s semaglutide (Ozempic^®, Wegovy^®) and Eli Lilly’s tirzepatide (Mounjaro^®, Zepbound^®) has catalyzed not just clinical excitement but also intense investor and acquirer interest. These medications have demonstrated not only weight loss upwards of 15-20% but also cardiovascular and metabolic benefits, positioning them as game-changers in preventive medicine.

Why the GLP-1 Market Is Attracting M&A Interest

• Massive Market Potential: Obesity affects over 890 million adults globally[1], with related comorbidities including diabetes, cardiovascular disease, and certain cancers. Analysts estimate the GLP-1 market could reach US$139 billion annually by 2030.[2]
• Pipeline and Platform Expansion: As demand surges, big pharma companies are under pressure to expand their metabolic portfolios. M&A offers a fast-track route to diversify into GLP-1 and adjacent incretin-based therapies (e.g., GIP (Gastric Inhibitory Polypeptide), dual/triple agonists).
• Technology Differentiation: Although current GLP-1s are effective, there is a premium on next-generation delivery systems (oral, transdermal, long-acting injectables) and multi-modal agonists. Acquiring innovative biotech firms with proprietary delivery platforms or novel peptide structures provides a competitive edge.
• Limited In-House Innovation: Not all big pharma players developed GLP-1 assets internally. As a result, acquiring external innovation, whether through platform technologies or late-stage assets, is becoming a strategic imperative.

Recent M&A Moves in the GLP-1 Landscape

The following transactions illustrate the growing M&A momentum in the GLP-1 space:

• Roche’s Acquisition of Carmot Therapeutics (2023):
  Roche paid US$2.7 billion upfront for Carmot, a clinical-stage biotech with a promising portfolio of incretin-based therapies, including dual GLP-1/GIP agonists. This move positioned Roche to compete in the metabolic disease arena, leveraging Carmot’s small molecule platforms to diversify beyond oncology.[3]
• AstraZeneca’s Acquisition of CinCor Pharma (2023):
  Though primarily targeting hypertension, AstraZeneca’s US$1.8 billion buyout of CinCor included a nod toward combinational potential with metabolic therapies, signaling broader interest in cardiometabolic synergies.[4]
• Pfizer’s Strategic Reassessment and Potential for Acquisitions (2024, 2025):
  After halting internal development of its oral GLP-1 candidate due to tolerability concerns, Pfizer has publicly stated its interest in acquiring external GLP-1 assets. Although no formal deal has closed, analysts speculate an acquisition could be imminent, especially in the wake of divestitures from its COVID-era portfolio.[5]^{, [6]}
• Novo Nordisk’s Expansion via Catalent Deal (2024):
  Novo Nordisk’s US$16.5 billion acquisition of Catalent’s fill-finish facilities demonstrates another angle of strategic M&A, ensuring capacity for GLP-1 manufacturing and reducing supply chain risks amid skyrocketing demand.[7]

Beyond Big Pharma: Biotech’s Role as Innovation Engines

Small- to mid-cap biotech firms are proving essential in advancing the next frontier of GLP-1 therapies. These companies are often rich in innovation but resource-constrained, making them prime acquisition targets for larger players. A few noteworthy examples include:

• Structure Therapeutics: Developing oral GLP-1R agonists, Structure has seen rapid investor interest post-Initial Public Offering (IPO) and is considered a prime candidate for acquisition due to its differentiated delivery approach.[8]
• Terns Pharmaceuticals: The company recently announced positive Phase 1 clinical results for its oral GLP-1R agonist for treating obesity, triggering acquisition rumblings.[9]
• Viking Therapeutics: The company is advancing early-stage GLP-1 or dual agonists with strong preclinical profiles and have recently experienced stock price surges on clinical data, fueling acquisition speculation.[10]

Strategic Implications and Risks

Although the M&A landscape in GLP-1 technology is vibrant, it is not without challenges, such as the following:

• Supply Chain Constraints: Companies acquiring GLP-1 assets must also manage complex peptide synthesis, formulation, and delivery bottlenecks. This makes CMC (chemistry, manufacturing, controls) and scale-up capabilities a due diligence priority.
• Regulatory Scrutiny: With GLP-1s being prescribed off-label for cosmetic weight loss, regulators may impose tighter restrictions, impacting long-term market forecasts.
• Valuation Pressure: As competition intensifies, valuations are soaring. This poses a risk of overpaying for early-stage assets with limited clinical data. Strategic buyers must carefully weigh scientific promise against commercial risk.
• Patent Life and Biosimilar Threats: The first-generation GLP-1s are already facing biosimilar competition timelines. Acquirers must assess exclusivity windows and invest in lifecycle management strategies.

The Future of M&A in the GLP-1 Arena

Looking ahead, several trends are likely to shape the next wave of M&A, including the following:

• Combination Therapy Focus: Expect acquisitions targeting companies developing dual/triple agonists (GLP-1/GIP/Glucagon) to address broader metabolic endpoints.
• Digital and Companion Tech Integration: Companies integrating wearables or AI-driven metabolic monitoring may become attractive M&A targets for firms aiming to offer holistic obesity/diabetes management solutions.
• Emerging Markets Expansion: Firms with strong distribution in Asia, Latin America, or Africa may see M&A interest as acquirers look to expand the global footprint of GLP-1 therapies.

Conclusion

The GLP-1 revolution is not only transforming the treatment of diabetes and obesity, it is also reshaping the strategic priorities of the pharmaceutical industry. With blockbuster sales, novel delivery technologies, and growing clinical applications, GLP-1s have become a magnet for M&A. For investors, innovators, and pharma executives alike, the current M&A wave in the GLP-1 sector represents both opportunity and inflection, one that will define the metabolic health market for years to come.

As GLP-1 technology continues to evolve, one thing is certain: the race to acquire the next breakthrough is only just beginning.

For additional resources on GLP-1 Receptor Agonists and how they will change the health care & life sciences and technology industries, click here to read the other articles in our series.

Foley is here to help you address the short- and long-term impacts in the wake of regulatory changes. We have the resources to help you navigate these and other important legal considerations related to business operations and industry-specific issues. Please reach out to the authors, your Foley relationship partner, our Health Care & Life Sciences Sector, or to our Innovative Technology Sector with any questions.

[1] World Health Organization, Obesity and overweight, May 7, 2025; https://www.who.int/news-room/fact-sheets/detail/obesity-and-overweight#:~:text=In%202022%2C%201%20in%208,million%20were%20living%20with%20obesity.

[2] TD Securities, GLP-1 Market: The Pipeline Expands, Mar. 10, 2025; https://www.tdsecurities.com/ca/en/glp1-market-the-pipeline-expands#:~:text=Global%20sales%20of%20GLP%2D1,from%20sales%20posted%20in%202024.

[3] “Roche to acquire Carmot Therapeutics for $2.7bn,” Pharmaceutical Technology, Dec. 3, 2023;   https://www.pharmaceutical-technology.com/news/roche-to-acquire-carmot-therapeutics/.

[4] “AstraZeneca to buy US-based CinCor Pharma for $1.8bn,” Pharmaceutical Technology, Jan 10, 2023; https://www.pharmaceutical-technology.com/news/astrazeneca-buy-cincor-pharma/#:~:text=AstraZeneca%20has%20signed%20a%20definitive%20agreement%20to%20buy,CinCor%20Pharma%20for%20%2426%20per%20share%20in%20cash.

[5] A. Zank, “Pfizer CFO talks strategic growth through acquisitions,” CFO Brew, Sept. 24, 2024; https://www.cfobrew.com/stories/2024/09/24/pfizer-cfo-talks-strategic-growth-through-acquisitions.

[6] M. Lee, “Pfizer Eyes $20 Billion Revenue From Acquisitions Amid Patent Cliff Challenges,” AInvest, Jan. 14, 2025; https://www.ainvest.com/news/pfizer-eyes-20-billion-revenue-from-acquisitions-amid-patent-cliff-challenges-25011010cf8550e9ae82e13f/.

[7] “Novo completes $16.5bn takeover of Catalent,” PharmaPhorum, Dec. 2024; https://pharmaphorum.com/news/novo-completes-165bn-takeover-catalent.

[8] “Structure Therapeutics Announces First Patients Dosed in Phase 2b ACCESS Clinical Study Evaluating Oral Small Molecule GLP-1 Receptor Agonist, GSBR-1290, for Obesity,” Global Newswire, Nov. 13, 2024; https://www.globenewswire.com/news-release/2024/11/13/2980634/0/en/Structure-Therapeutics-Announces-First-Patients-Dosed-in-Phase-2b-ACCESS-Clinical-Study-Evaluating-Oral-Small-Molecule-GLP-1-Receptor-Agonist-GSBR-1290-for-Obesity.html.

[9] “Terns Pharmaceuticals Announces Positive Phase 1 Clinical Trial Results with TERN-601 Once-Daily Oral GLP-1R Agonist for the Treatment of Obesity,” Global Newswire, Sept. 9, 2024;  https://www.globenewswire.com/news-release/2024/09/09/2942701/0/en/Terns-Pharmaceuticals-Announces-Positive-Phase-1-Clinical-Trial-Results-with-TERN-601-Once-Daily-Oral-GLP-1R-Agonist-for-the-Treatment-of-Obesity.html.

[10] “Viking Therapeutic’s new GLP1 impresses at ObesityWeek 2024,” GLP1.Guide, Nov. 4, 2024; https://glp1.guide/content/viking-therapeutics-new-glp1-impresses-at-obesity-week-2024/.