Biotech is commanding attention from dealmakers and investors. Pharma companies have acquired 37 biotech firms worth at least $1 billion this year, more than all of 2025, as they race to bolster pipelines before several blockbuster drugs lose their patent protections in the coming years.
The Trump administration’s light-touch regulatory approach and windfalls from top-selling drugs are also driving M&A, the Financial Times noted.
Against this backdrop, biotech and pharma firms’ IPOs are producing some of the year’s strongest returns, outperforming many AI-related listings, Bloomberg reported. “This is the healthiest biotech IPO market we have had in a long time,” an investment banker said.