Several biotechnology companies, including Revolution Medicines and Ascendis Pharma, have been named as potential takeover targets by analysts at RBC Capital Markets, according to a note released on March 19. The analysis comes as some experts say the pharmaceutical industry may soon see a major merger between two large companies.
The possibility of significant mergers is drawing attention because many leading pharmaceutical firms are facing upcoming patent expirations, which could impact their revenue streams. As a result, these companies are looking for new products to add to their pipelines.
Revolution Medicines has recently been the subject of acquisition rumors involving Merck and AbbVie. Reports earlier this year suggested that Merck considered an offer valued between $28 billion and $32 billion, but no agreement was reached. AbbVie denied involvement in the talks. Despite the failed negotiations, Revolution CEO Mark Goldsmith said at the J.P. Morgan Healthcare Conference in January, “It’s not our goal to build something big. It’s our goal to build something that’s impactful.”
Interest in Revolution is largely driven by its lead drug candidate daraxonrasib, which is being developed for RAS-mutated pancreatic cancer. In clinical trials last September, daraxonrasib showed a confirmed objective response rate of 29% in second-line treatment and 47% when used as frontline therapy. The U.S. Food and Drug Administration later awarded the drug a Commissioner’s National Priority Voucher for expedited review.
Other companies attracting buyout speculation include BioCryst Pharmaceuticals—whose stock rose after reports it could be acquired by a larger firm—and Rhythm Pharmaceuticals, which awaits a regulatory decision that could expand its obesity drug Imcivree into new markets worth over $2 billion. Ascendis Pharma also recently received FDA approval for Yuviwel, an achondroplasia treatment designed to compete with BioMarin’s Voxzogo.
While smaller deals continue to occur, analysts suggest that the industry may be approaching another large-scale merger similar to Pfizer's $43 billion acquisition of Seagen in 2023. "Companies facing revenue declines in 2025–2030 may need to pursue larger deals that provide immediate revenue contribution," Leerink Partners said in its October 2025 report.
Experts believe consolidation could help major pharmaceutical firms address future challenges and maintain growth.
