Behind the Headlines, Episode 23: Patent Cliff Deals, Tariff Pressures, and the In Vivo Cell Therapy Bet

Behind the Headlines is a bi-weekly panel discussion examining the latest trends, readouts, and other factors that drive pharmaceutical news and innovation. Each episode features consultants, venture capitalists, scientists, patient advocates, and journalists discussing the prior weeks’ top news while seeking to highlight the more enduring lessons that hide behind the headlines.

In episode 23, the panel analyzes how looming patent cliffs, rising trade pressures, and a new wave of in vivo platforms are reshaping the biotech deal landscape. Benjamin McLeod, founder of Convey BIO, and Sebastian Lykke Skafte Andersen, managing director and founder of ClarityNorth Partners, examine how recent headlines signal deeper structural shifts for pharma commercialization and manufacturing strategy.

Pricing Pressure Sparks Accelerated M&A

The panel begins by spotlighting Merck’s $10 billion acquisition of Verona Pharma (1) as a clear example of dealmaking driven by pricing headwinds. With the Most-Favored Nation (MFN) executive order pushing U.S. drug prices toward European benchmarks, biopharma buyers are racing to acquire late-stage, revenue-generating assets ahead of price compression. As margins come under threat, preemptive M&A is becoming a go-to strategy for portfolio fortification.

In Vivo CAR-T Moves Closer to Center Stage

Attention then turns to the in vivo cell therapy frontier. Gilead’s Kite Pharma recently acquired Interius Biotherapeutics for $350 million (2), adding a modular in vivo CAR-T platform aimed at broadening therapeutic applications and improving scalability. Cindy Perettie, executive vice president at Kite, highlighted the potential for combining Interius’ novel platform with Kite’s established infrastructure to accelerate in vivo therapeutic development.

Tariffs Trigger Infrastructure Rethink

The panel also examines AstraZeneca’s massive $50 billion U.S. investment as a strategic response to escalating U.S. pharma tariffs, some exceeding 250%. The company’s pivot marks a larger industry trend toward reshoring biomanufacturing as a form of industrial policy, not just portfolio strategy. Beyond portfolio diversification, AstraZeneca’s U.S. expansion includes GLP-1 pipeline growth, CGT infrastructure, and regulatory optimization through increased U.S.-based trials.

Watch the full episode above for more insights into the evolving biopharma landscape and catch up on previous episodes of Behind the Headlines here.

References
1. Merck to Acquire Verona Pharma, Expanding its Portfolio to Include Ohtuvayre® (ensifentrine), a First-In-Class COPD Maintenance Treatment for Adults and Expected to Drive Growth into the Next Decade. Press Release. Merck. July 9, 2025. https://www.merck.com/news/merck-to-acquire-verona-pharma-expanding-its-portfolio-to-include-ohtuvayre-ensifentrine-a-first-in-class-copd-maintenance-treatment-for-adults-and-expected-to-drive-growth-into-the-next-dec/
2. Kite to Acquire Interius BioTherapeutics to Advance In Vivo Platform. Press release. InteriusBioTherapeutics. August 21, 2025. https://interiusbio.com/press-release/kite-to-acquire-interius-biotherapeutics-to-advance-in-vivo-platform/