Zimmer Biomet Holdings Inc. (ZBH) agreed to acquire Embody Inc. for $155 million at closing with an additional $120 million in contingent milestone payments over the next three years. The deal includes Embody’s entire portfolio of collagen-based regenerative solutions for soft tissue injuries. The transaction is expected to close in February.

Wuxi Biologics (Cayman) Inc. is providing an exclusive license to GSK plc for a preclinical bispecific T-cell engaging antibody along with the option of three additional bi- and multispecific TCE antibodies developed by Wuxi. In exchange, Wuxi will receive an up-front payment of $40 million and up to $1.46 billion in additional payments for research, development, regulatory and commercial milestones across the four TCE antibodies. Wuxi Biologics, of Shanghai, is also eligible to receive tiered royalties on net sales.

Belharra Therapeutics Inc., an early stage firm which is pioneering a new approach to chemoproteomics, has already found an influential backer for the distinctive way it systematically probes the interactions between small-molecule ligands and the proteins to which they bind.

Investment in the fourth quarter of 2022 was dismal in Asia Pacific, as the global venture community focused on preserving capital. And the region faced other challenges throughout the year, as leaders in Australia and across Asia became acutely aware of the vulnerabilities in their supply chains. But the year also saw some big deals and collaborations involving companies across Asia Pacific, along with advances in regenerative and digital medicine.

In one of the first large preclinical deals of 2023, Evoq Therapeutics Inc. is licensing for up to $685.5 million its Nanodisc technology to Gilead Sciences Inc. to develop new rheumatoid arthritis and lupus treatments. The potential payout includes up-front fees, an option exercise and milestone payments across both programs. Evoq also could receive tiered royalties on any sales that result.

With many of the big names in med tech focused on streamlining their portfolios and spinning off divisions as independent companies, M&A activity sputtered through most of 2022. As the year comes to a close, however, deal volume has increased, with a strong trend toward acquisitions of closely related companies and units that bolstered higher-growth product lines and offered short cuts to filling in significant gaps in portfolios.

Investment in the fourth quarter of 2022 was dismal in Asia Pacific, as the global venture community focused on preserving capital. And the region faced other challenges throughout the year, as leaders in Australia and across Asia became acutely aware of the vulnerabilities in their supply chains. But the year also saw some big deals and collaborations involving companies across Asia Pacific, along with advances in regenerative and digital medicine.

The success of new year’s resolutions for 2023 won’t be known for months to come, but from the vantage point of December, it is easy to see that many large med-tech companies resolved to shed excess weight in 2022 – and did so in dramatic fashion. Some big-name players decided that they would be more agile, and better rewarded by shareholders, with a trimmer portfolio, while others saw value in setting internal operating units free as new companies. As part of our year in review, BioWorld looks at the big deals, the new companies and the impact of all these actions on 2023.