Blockbuster deals are on the rise as drug manufacturers navigate through patent cliffs, pricing pressures, and evolving regulations while M&A activity remains an integral part of the strategic landscape.

Investors are scrambling to assess the fallout of a U.S. regulatory challenge against Amgen’s proposed $27.8 billion acquisition of Horizon Therapeutics, with some fearing a spillover to other big deals in the drug sector.

Pfizer Inc on Monday struck a roughly $43 billion deal for Seagen Inc to bulk up its cancer treatments portfolio, as the drugmaker braces for a steep fall in COVID-19 product sales and loss of exclusivity for some top sellers.

For many in the biotech space, the pandemic was a chance to prove their worth, creating vaccines in record time and, for some, earning significant profits. Now, with the pandemic receding amidst rumblings of a global recession, the industry is facing what some consider the worst times since its inception.

Merck is in late-stage discussions to acquire Seagen for about $40 billion, sources told The Wall Street Journal. Seagen is an appealing oncology target for Merck at a time when the latter is looking to bolster its cancer portfolio as mega-blockbuster Keytruda (pembrolizumab) teeters on the patent cliff.