Biotechnology, pharmaceutical and medtech companies each contributed about 30 percent of deal volume to overall mergers and acquisitions (M&A) activity in 2025.
The surge is attributed to rising obesity and diabetes cases, with the 2025 World Obesity Atlas projecting that the total number of adults living with obesity will increase from 524 million to 1.13 billion between 2010 and 2030, around 115 percent.
With this, companies are working towards strengthening their metabolic pipelines, from improving drug delivery to extending the commercial life of their products or treatments. This also means a larger opportunity for smaller biotech firms that are proposing new solutions or clinical‑stage candidates.
The GLP-1 craze
In the years after the pandemic, GLP-1 drugs rose to prominence, particularly Novo Nordisk’s Ozempic and Wegovy. Cases of addiction and counterfeits were even reported given the drugs’ aid in weight loss and glycemic control.
To illustrate, spending on anti-obesity medications (AOMs) was around US$3 billion in 2020. This figure was projected to exceed US$30 billion by 2024, and is already much higher today.
Insights from IQVIA add that the global AOM market is on track to experience a compound annual growth rate of 13 to 15 percent leading up to 2034, driven by broader access and novel formulations.
Eli Lilly’s tirzepatide is expected to be the globally best-selling drug in 2026, with revenue estimated at US$45 billion.
Analysts predict that the obesity treatment market could exceed US$100 billion annually by the 2030s, underscoring the immense potential and the urgency for key players to secure their positions in the landscape.
Some have recently increased their predictions to more specific amounts, such as TD Cowen, which now has a 2030 sales forecast of US$139 billion. Roots Analysis is forecasting sales of US$180 billion by 2035, while UBS Investment Bank expects 2029 GLP-1 sales to reach US$126 billion.
Investors should note that buyers are increasingly seeking assets that either reduce development timelines or offer significant differentiation. This emphasis is influencing which small biotech firms are capturing attention in the marketplace.
M&A activity as a remedy
Pharmaceutical and biotechnology companies saw a surge in M&A activities as companies raced to tackle pressing health challenges and work on their treatment pipelines.
The Institute for Mergers, Acquisitions and Alliances notes a particularly busy first quarter in 2024, with deals aimed at strengthening therapeutic portfolios and capturing growth in fast‑moving markets.
Leading the 2024 deals was one between Novo Holdings and Catalent, valued at US$16.5 billion. This was followed by the US$4.3 billion agreement between Cyma Bay and Gilead Sciences (NASDAQ:GILD), then Roquette’s US$2.85 billion acquisition of Pharma Solutions.
Prior to these, Roche Holding (OTCQX:RHHBY,SWX:ROG) acquired Carmot Therapeutics in 2023, while pharmaceutical giant Pfizer (NYSE:PFE) intensified its investments in metabolic programs following some setbacks with its oral GLP-1 initiatives.
The role of drug-delivery platforms
How a drug enters the human body is becoming just as important as what the drug is made of. Most approved GLP‑1s as of writing still require injections, and that can be a real hurdle for long‑term adherence and everyday use.
Oral options are the obvious prize, because pills are easier for patients and can open much larger markets. But turning injectable peptides into reliable oral medicines is hard, as consistent absorption and predictable blood levels remain scientifically challenging.
That’s why many companies are betting on delivery technology rather than new molecules. A better delivery method can make an existing drug more convenient, safer or more tolerable and that kind of differentiation helps extend a product’s commercial life and potentially eliminate side effects.
When delivery platforms show human data that they work, they suddenly become potential targets for partnerships or acquisitions. This is because they simply offer a faster, lower‑risk route to meaningful market advantage.
Lexaria Bioscience responds with DehydraTECH platform
US$22.37 million company Lexaria Bioscience (NASDAQ:LEXX) is developing technology aimed at addressing pressing challenges in the global pharmaceutical industry.
Its DehydraTECH platform, which has been in advanced research and development since 2015, initially centered on studies assessing pharmacokinetics. Studies first specifically looked at how efficiently its formulations could improve the speed and extent of drug delivery into the bloodstream, and in certain cases, the brain, after oral administration.
The company has since been evaluating DehydraTECH across multiple therapeutic areas, with a recent focus on applying the platform to GLP-1 drugs. At least 65 patents have also been granted, while others are pending applications to diabetes, hypertension-related conditions, epilepsy, antiviral drugs, central nervous system conditions, phosphodiesterase type 5 inhibitors and others.
According to Lexaria Bioscience, DehydraTECH is the only technology publicly disclosed for its ability to reduce side effects in all 3 of the top GLP-1 drugs currently sold in the world today: semaglutide, tirzepatide and liraglutide.
For example, among common concerns in GLP-1 intakes are side effects of nausea, vomiting or diarrhea.
As early as their 2024 trials, Lexaria shared that DehydraTECH-processed Rybelsus® capsules “demonstrated superior tolerability in delivering the GLP-1 drug semaglutide” compared to commercially available ones.
Rybelsus® was also developed by Novo Nordisk, primarily as the oral version of semaglutide. The drug uses an absorption-enhancing technology to enable oral delivery of a peptide that would otherwise require injection.
The DehydraTECH experience
Lexaria explains that oral GLP-1 drugs often produce very similar results to injected GLP-1 drugs.
The company cites studies funded by Novo Nordisk (NYSE:NVO): “For instance, in a 2021 study, patients who took once-weekly semaglutide injections lost an average of 15 percent of their body weight, as compared to a 2023 study of oral semaglutide which also resulted in patients losing approximately 15 percent of their body weight.”
Still, most patients using GLP-1 drugs have reported gastrointestinal side effects, regardless of the method of administration. In a separate 2021 study funded by Novo Nordisk involving injected semaglutide, 74 percent of patients experienced these effects. The 2023 study on oral semaglutide indicated that 80 percent of patients reported side effects.
How does DehydraTECH make the experience manageable? Lexaria said that it “focused on the goals of improving patient experiences via the preferred oral delivery method whilst preserving the efficacy of the underlying medication.”
Developing DehydraTECH
Following a renewed focus on GLP-1, Lexaria is further developing DehydraTECH with a new human clinical study announced in April 2026.
This time, the study will center on evaluating two oral DehydraTECH-compositions against commercially available Wegovy tablets.
The inaugural study will also test both tablet and capsule versions paired with SNAC (salcaprozate sodium) over five weeks, allowing researchers to track the drug’s behavior once levels reach steady state. This means the formulation will be stressed enough to see whether it can provide consistent absorption and improved tolerability over time.
“If successful, the study results will be additive to an already impressive data set aimed at generating interest from pharmaceutical partners seeking to enter into commercial relationships encompassing Lexaria’s proprietary DehydraTECH technology,” the company wrote.
The value of proof
Large pharmaceutical companies, possibly most large companies in general, will not risk investing money into assets that have not demonstrated proof of concept. Especially for biotech or pharmaceutical companies, human studies are vital to eliminate risk not only from a developmental or financial perspective, but in terms of medical and corporate integrity.
Early stage technologies with strong clinical data, such as DehydraTECH, are likely to attract significant interest given the presence of proof. With metabolic health increasingly becoming a high-growth market, companies with unique, valuable propositions become the smart and safe choice.
Strategic buyers are also looking into platform technologies that can be applied across multiple indications, enable rapid data reuse and accelerate clinical success.
Investor takeaway
The simple logic in healthcare investing is that products backed by solid human data are far more reliable. Companies that demonstrate safety and effectiveness in people, not just in theory, give investors greater confidence.
Without that validation, the risk is lethal. With it, trust comes alive.
In addition, platforms that can make existing drugs easier to take or more tolerable in the long run become vied for in acquisition conversations.
For smaller biotechs, this is where opportunity lies. If a technology shows clear results in people, it becomes far more attractive as a partner or buyout candidate. Lexaria’s recent GLP‑1 studies with its DehydraTECH platform are good examples, as it highlights how clinical milestones can turn a delivery concept into a strategic asset.
Human validation and patient experience remain key, and that is where the sector will likely see the next wave of partnerships or acquisitions take place.
This INNspired article is sponsored by Lexaria Bioscience (NASDAQ:LEXX). This INNspired article provides information which was sourced by the Investing News Network (INN) and approved by Lexaria Bioscience in order to help investors learn more about the company. Lexaria Bioscience is a client of INN. The company’s campaign fees pay for INN to create and update this INNspired article.
This INNspired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Lexaria Bioscience and seek advice from a qualified investment advisor.
