If the buyout market signals biotech and medtech are rebounding in the midst of RFK Jr. and Trump II, two deals in the past week present convincing evidence. One was at the lower end by deal size while the other ranked among the largest of 2025.
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) on July 14 agreed to buy Monogram Technologies, Inc. (NASDAQ:MGRM) for ~$177 million in cash plus a non-tradeable contingent value right (CVR) valued a $12.37 per share of common stock. Monogram’s stock climbed to $5.87 per share on Monday , up from a $3.29 per share close on Friday, July 11.
At the upper end, Merck & Co. Inc. (NYSE:MRK) agreed to buy Verona Pharma plc (NYSE:VRNA) for $10 billion. One year ago, Verona’s stock traded at $21.50 per share. When Merck announced its purchase on July 9, Verona’s stock closed at $104.77 per share.
The motivations for Zimmer Biomet and Merck & Co. are similar but slightly different, especially according to scale. Merck & Co. is preparing for the loss of patent protection before 2030 for Keytruda, which generated $29.5 billion in sales last year accounting for 46% of company revenue.
With the Verona deal, Merck gains ensifentrine, branded as Ohtuvayre. Approved in June 2024, Ohtuvayre generated $71 million in sales in 1Q 2025 as the first, novel inhaled treatment for chronic obstructive pulmonary disease (COPD) in more than two decades. Merck envisions multi-billion potential for Ohtuvayre as the COPD market is forecast to increase to $27 billion by 2032 from $17 billion this year.
Zimmer Biomet’s purchase of Monogram continues the company’s shift to a consumer centric portfolio as it attempts to compete in the medical device market. With an $18.6 billion market cap, Zimmer Biomet is hardly small but it falls well below giants such as Johnson & Johnson (NYSE:JNJ) and Stryker Corp. (NYSE:SYK).
In knee replacement surgery, Monogram’s mBôs TKA System precisely places the surgical cut into the knee after modeling the locations of the relevant cartilage and bone. Previous systems relied on computer imaging but the placement of the cut was still guided largely by the surgeon. The FDA granted clearance to Monogram’s semi-autonomous mBôs System In March 2025. Monogram and Zimmer Biomet aim to complete a phase III clinical trial in India using a hands-free robotic saw this year and then launch the system with Zimmer Biomet’s line of implants by early 2027.
The takeaway for both deals: Large companies need revenue from new drugs or technologies to keep ahead of patent expirations and treatments no longer fully embraced by payers.
Johnson & Johnson likewise is no exception. In January, the company agreed to buy Intra-Cellular Therapies for $14.6 billion based on the surging sales of Intra-Cellular’s schizophrenia and biopolar treatment Caplyta. Intra-Cellular’s market cap doubled to $10 billion at the end of 2024, compared to $5 billion two years earlier, thanks to Caplyta sales and market expansion.
Verona Pharma, Monogram and Intra-Cellular all were covered by BioTech Currents prior to important catalysts for each company. The remaining shares of Verona and Monogram held by SanaCurrents yielded returns of 475% and 165%, respectively, after the buyouts were announced this month.
Up next? Earlier this year Merck & Co. reportedly made a $3 billion bid for MoonLake Immunotherapeutics (NASDAQ:MLTX). MoonLake’s lead drug is the nanobody (sonelokimab) to treat a rare skin disorder called Hidradenitis suppurativa (HS). Data from two Vela-1 and Vela-2 phase III trials testing sonelokimab in HS are expected to be released in September 2025. Should the data be positive, buyout talks for MoonLake – by Merck & Co. or another bidder – could pick up. The reported $3 billion bid for MoonLake falls within a “sweet spot” range of $1 billion to $15 billion that Merck wants to pay for acquisitions, according to CEO Rob Davis.
The board and management of MoonLake will face the same fork in the road as Monogram: Continue to develop the technology and build value within the company and the commercial marketplace or partner/sell to a large bidder who can move much faster. The looming tariff pressures and uncertainty of an RFK Jr.-led FDA appear to favor the latter option.