As biopharma M&A activity ramps back up, strategy is shifting to no longer focus on securing the next blockbuster drug, but instead to ink deals that build out capabilities across the entire drug development and commercialization process.
That’s a key takeaway from Bain & Company’s Global M&A Report 2026, which incorporates sentiment from M&A executives and deal data from numerous industries, including pharmaceuticals.
Through Nov. 15 of last year, pharma deal value rose 79% compared to the same period in 2024, according to Bain. The average deal size also climbed more than 80%, “signaling a decisive return of confidence in M&A,” the report authors wrote.
The trend wasn’t applicable to the larger healthcare and life sciences industries, with deal counts falling in those fields by 10% through Nov. 15, according to Bain. Still, biopharma drove a significant portion of the sector’s 29% surge in deal value over the same timeframe.
“While other healthcare sectors are retrenching, pharma is leaning in with a sharper focus and a new rulebook,” the Bain report reads.
The new rules center on securing platforms and production means and ultimately creating capacity across the value chain.
“For industry executives, the urgent question in 2026 and beyond is, ‘What parts of the value chain must we own to stay ahead of the competition?’” Bain wrote.
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The “quest for vertical integration” is one of the four trends driving M&A shifts that the consulting firm lays out.
The other three trends are the next-gen obesity race—the resurgence of antibody-drug conjugates (ADCs) and the rise of China.
For obesity drugs, buyers are moving away from looking to rapidly bring an injectable to market, instead zeroing in on next-gen delivery platforms, multi-agonist molecules and control of manufacturing processes.
Companies now want to own platforms, according to Bain—and the potential revenue tied to the rest of the value chain.
Next up are ADCs, which have been fueling a spike in oncology dealmaking, such as Roche’s recent deal to pay MedLink Therapeutics $570 million in near-term payments for an ADC targeting the immune checkpoint protein.
Recently, ADCs made up 40% of all antibody and recombinant antibody transactions, according to Bain.
“Big pharma’s appetite for more precisely targeted therapies has pushed ADC transactions to record levels, with smaller innovators generating much of the science and licensing activity,” according to the Bain report.
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And then there’s China. The nation has developed “a world-class pharma pipeline,” making the country an attractive M&A target.
As the geopolitical landscape changes rapidly, China’s early-stage assets have started to make their way West via “creative alliances rather than outright takeovers.”
Looking forward, Bain recommends that leaders prioritize differentiation over scale. That means ensuring that players are buying for the long-term upper hand and not just short-term growth.
