Biotechnology mergers and acquisitions are gathering pace across both public and private markets, with activity extending well beyond the largest headline-grabbing transactions, according to a a report by Bloomberg citing a senior Paul Weiss executive.
Speaking in a Bloomberg Television interview, Krishna Veeraraghavan, global co-head of M&A at Paul Weiss, said the sector has experienced an exceptionally strong year for dealmaking, with more acquisitions valued above $1bn completed in 2026 than during the whole of 2025.
While mega-deals continue to dominate headlines, Veeraraghavan said the recovery has become increasingly broad-based. Mid-sized biotech companies, many of which were themselves acquisition targets in recent years, are now emerging as buyers, acquiring businesses valued between $1bn and $2bn. At the same time, transaction volumes involving privately held biotech companies have also increased significantly.
According to Veeraraghavan, the expanding range of active acquirers has created a much deeper buyer universe than in previous years.
The renewed momentum has been supported by several large-scale transactions, with four deals worth at least $10bn completed over the past few months. Combined with a strong rebound in biotech equity markets, the uptick in M&A has helped fuel a positive cycle that is also supporting follow-on equity offerings and initial public offerings as investor confidence returns.
Veeraraghavan also pointed to an improved regulatory backdrop, describing the current environment as favourable for transactions. He noted that overseas buyers, particularly from Europe and Japan, remain active in pursuing US biotechnology assets, while cross-border dealmaking has continued without any significant slowdown.
The outlook contrasts sharply with sentiment a year ago, when uncertainty surrounding US Food and Drug Administration policies, drug pricing proposals and tariff concerns dampened appetite for transactions across the sector.
He also highlighted changing acquisition strategies within the industry. Increasingly, companies are pursuing so-called “acqui-hire” transactions, where the primary attraction is scientific talent, research expertise and development capabilities rather than existing revenues. In addition, partnership agreements are increasingly serving as a pathway to full acquisitions as companies look to deepen relationships with promising biotech innovators.
