Pharma M&A set to boom in 2026
- Total Deal Value: $240 Billion
- Growth (YoY): +81%
- Top Therapy: CNS (23%)
- Top Region: China (34% Invest.)
- 2026 Firepower: $2.1 Trillion
After years of unspectacular Mergers and Acquisitions (M&A) activity, 2025 recorded some of the largest pharma deals. With major patent expiries approaching, large pharmaceutical companies are turning to acquisitions to replenish pipelines and secure future revenue.
EY reported that total deal value increased 81 per cent in 2025 to $240 billion, driven mainly by large transactions rather than a rise in the number of deals. These shifts in 2025 have shaped expectations for higher M&A activity in 2026.
Therapeutic Focus and Big Pharma Activity
Therapeutic focus in 2025 was more varied than in previous cycles. By deal value share, the top five therapy areas were:
- Central nervous system (CNS): 23%
- Cardiovascular–renal–metabolic: 22%
- Oncology: 20%
- Respiratory: 15%
- Immunology: 10%
Big Pharma announced around 20 major acquisitions during the year. Novartis was the most active acquirer, completing four deals, followed by Merck with three and Johnson & Johnson with two. Notable deals included:
- Abbott: $21bn for Exact Sciences
- Novartis: $12bn for Avidity Biosciences
- Pfizer: $10bn for Metsera
- Merck: $10bn for Verona Pharma
China Will Be Key Element in 2026
It is impossible to talk about biopharma without addressing China’s growing influence. The country has become an established innovation hub, contributing about 30 per cent of the global biotech pipeline. In 2025, China accounted for 34 per cent of global alliance investments and more than one in every three biobucks spent by the industry.
— Ning Zhang, Partner, Morgan Lewis
Asia-Pacific M&A Trends
In Asia-Pacific, deal activity was focused on oncology, manufacturing capacity, and regional expansion. Citi expects more M&A deals in Asia in 2026, particularly in the healthcare sector and cross-border transactions. Key regional deals included Torrent Pharmaceuticals' move for JB Chemicals (Rs 25,689 crore) and Sino Biopharma’s $951 million acquisition of LaNova Medicines.
Future Outlook: $2.1 Trillion Firepower
According to EY, the life sciences sector entered 2026 with an estimated $2.1 trillion in available firepower. Biologics and next-generation modalities remain the main focus. Cell and gene therapies are expected to attract investment, alongside emerging mechanisms such as TL1A inhibitors, protein degraders, and PDE3/4 inhibitors. RNA technologies are also gaining attention as companies look to expand into newer therapeutic approaches.
