Biotech firms weigh up listings and takeovers amid fierce demand

Biotech firms are sitting on a rare double exit window — IPO markets and major pharma acquirers are both competing for the same assets, JPMorgan EMEA healthcare investment banking co-heads Juha Anjala and Roy Wouters told CNBC.

By the numbers: Biotech dealmaking has already hit USD 106 bn from 21 transactions this year, CNBC reports elsewhere, after 2025 saw seven transactions each worth USD 5-15 bn. That puts it on track for its strongest year since its pre-pandemic peak seven years ago.

Why the frenzy: Pharma firms are racing against a patent cliff — when a blockbuster drug's exclusivity expires, generics flood the market and revenues can collapse by 80-90% almost overnight. A wave of those expirations is coming simultaneously, with analysts estimating a sector-wide revenue hit of up to USD 350 bn by 2032. Buying proven biotech assets is the fastest way to replace that pipeline — around half of the best-performing drugs in recent years were acquired rather than developed in-house, with the most competition clustering around metabolic conditions, infectious diseases, and oncology.

The result: The strongest performers are keeping both options open simultaneously — prepping for an IPO while fielding acquisition conversations. Some are choosing the takeover route outright.

GCC sovereign wealth is also circling. Abu Dhabi’s Mubadala has been expanding its presence in the biotech sector through its pharma unit arm Mubadala Bio with investments in the US’ ElectraTherapeutics and nutri-tech firm L-Nutra, while the Abu Dhabi Investment Authority has been similarly active. Qatar has a sizable biotech investment footprint, with a USD 250 mn play into BridgeBio Pharma and USD 255 mn for Isotope Technologies Munich.

MARKETS THIS MORNING-

Asia-Pacific markets were mixed in early trading this morning as the rally sparked by the US-Iran framework agreement cooled and investors sat tight ahead of today’s Federal Reserve policy decision. Japan’s Nikkei was up 0.7%, while South Korea’s Kospi was down 0.1%. Over on Wall Street, equities are set to open higher, with futures in the green.

The values in the table above are listed according to the market position as of 3:30pm IST / 2pm GST.