Lexology December 18, 2025
Strategic shifts: from full M&A to licensing and co-development models
Traditional M&A remains important, but companies are increasingly favouring licensing, joint ventures and co-development deals to manage risk and retain flexibility.1 These alternative structures are especially valuable when navigating the uncertainty of early-stage science or unfamiliar regulatory environments.
A prime example is Astellas Pharma’s $1.54bn deal with Evopoint Biosciences in May 2025 for an antibody–drug conjugate (ADC) targeting CLDN18.2. Instead of a full acquisition, Astellas opted for a strategic collaboration structure through an exclusive licence agreement with upfront, near-term and other phased payments tied to development and commercialisation, in addition to royalties on ADC’s net sales if it receives regulatory approval.2 This structure enhances Astellas’ access to an emerging cancer...
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