Thinking About Exiting? When to Sell Your Life Sciences Business
For founders and executives in the life sciences space—whether in drug development, CDMO, diagnostics, digital health, and more—the decision to sell your company can be both thrilling and overwhelming.
At Sosna + Co, we help companies navigate the complexities of M&A with clarity, confidence, and strategy. So if you're wondering "Is now the right time?", read on.
When Is the Right Time to Consider Selling?
Exiting isn’t just a financial decision. It’s a strategic one. While every company is different, there are four common inflection points that often trigger an M&A discussion:
Growth Has Plateaued
You’ve built a solid business, but future scaling requires capital, infrastructure, or expertise you don’t currently have.You’re Receiving Inbound Interest
Larger strategics or private equity firms have reached out about partnerships, investments, or acquisitions.You’re Facing Internal Burnout or Leadership Transition
Your team is stretched thin, or key founders are ready for the next chapter.The Market Is Hot (and Valuations Are Strong)
A window of opportunity may be open, especially if your space is attracting M&A or licensing activity.
2025 M&A Spotlight: Where Life Sciences Deal-Making Stands Today
This year has seen a surge of strategic acquisitions across life sciences, signaling a step-change in M&A momentum. Below are a few on our radar that any biotech and pharma executive should be paying attention to.
These deals underscore a shift from scale-based M&A to purpose-driven acquisitions focused on therapeutic differentiation in neuroscience, oncology, rare disease, and mRNA innovation.
Johnson & Johnson closed a landmark $14.6 billion acquisition of Intra‑Cellular Therapies, boosting its neuropsychiatry portfolio with Caplyta and other pipeline assets Reuters+14Pharmaceutical Technology+14DelveInsight+14LinkedIn.
Eli Lilly acquired Scorpion Therapeutics for up to $2.5 billion, securing its PI3Kα inhibitor STX‑478 and strengthening its oncology pipeline Healthcare Brew+3Pharmaceutical Technology+3DelveInsight+3.
GSK spent approximately $1.15 billion to acquire IDRx, adding precision GI oncology assets like IDRx‑42 to its portfolio Healthcare Brew+3Pharmaceutical Technology+3Xtalks+3.
BioNTech is acquiring CureVac in a $1.25 billion all-stock deal, positioning itself to extend its mRNA capabilities beyond vaccines into oncology and genetic disease therapies Labiotech.eu+11barrons.com+11LinkedIn+11.
Merck KGaA agreed to acquire SpringWorks Therapeutics for $3.9 billion, reinforcing its presence in rare cancer treatments and gene-targeted oncology LinkedIn+2Healthcare Brew+2Investopedia+2.
Sun Pharma made a strategic $355 million acquisition of Checkpoint Therapeutics, entering the U.S. oncology market with a newly-approved PD‑L1 inhibitor for skin cancer Wikipedia+2chemxpert.com+2biotechworldwide.net+2.
For leaders in biotech, pharma, and life sciences, the message is clear: now is a critical time to assess whether strategic growth—or exit—could unlock real value.
Should I Start Exploring a Sale? A Flowchart
Although the decision to exit can be a complicated one, it can help to take a bird's eye view of the decision process. Try our handy chart and steps below:
Step 1: Assess Your Growth Path
Start by evaluating whether you have a clear and viable growth plan for the next 2–5 years. If you do, move to Step 2. If not, go to Step 3.
Step 2: Evaluate Your Resources
Can you fund your projected growth internally?
Yes → You’re in a good position to continue building and scaling—stay the course.
No → It might be time to explore a capital raise or consider a partial exit to bring in external support or investors.
Step 3: Strategic Intentions
Are you open to partnering with or being acquired by a strategic buyer?
Yes → It’s time to start exploring M&A options.
No → Reassess your position and goals in 6–12 months.
Exit Readiness Checklist ✅
If you're thinking about exiting in the near or long term, it helps to break down the decision into concrete stages to consider. To help, we created a free Exit Readiness Checklist to help leaders assess not just financials but operations, leadership, and other key considerations.
Grab the checklist here, written specifically for life science companies.
What Happens Next?
If you’re even considering a sale in the next 1–3 years, early planning is key. The most successful exits don’t happen overnight. They’re built on years of groundwork.
At Sosna + Co, we help life sciences companies with M&A advisory, including:
Evaluating market value and readiness
Exploring options like full sale, carve-outs, or licensing
Building relationships with qualified acquirers
Preparing materials including a data room and navigating due diligence with confidence
For a comprehensive due diligence checklist for life science M&A, check out this resource.
Need Help Planning Your Exit?
Whether you’re exploring your options or preparing to exit in the near future, The Sosna + Co team can help. Let’s have a confidential chat to see if it’s the right time and what your next steps should be.