USA Trends and Developments Contributed by: David McIntosh, Matt Byron, Zoe Dettelbach, Paul Matheke and Toby Shao, Ropes & Gray
Conclusion The life sciences industry navigated a challenging landscape in 2025, marked by early policy uncertainty that gave way to a strong second-half rebound in pub- lic markets, M&A and licensing activity. Licensing deal values climbed well above recent benchmarks, with transactions involving Chinese biotech firms playing an increasingly prominent role. Venture capital, while subdued, reflected continued deployment toward de-risked, later-stage opportunities. The trends that shaped the sector’s upward trajectory to close the year are poised to carry into 2026, with the impend- ing patent cliff expected to continue driving both M&A and licensing activity as companies seek to fill gaps in their pipelines. The intensifying GLP-1 market and advancing AI applications in drug discovery will likely continue to influence innovation and deal activity. While the policy environment appears to be stabilis- ing, uncertainties around MFN pricing, tariffs, and the BIOSECURE Act will introduce both opportunities and challenges in the year ahead.
Stifel opined that the policy environment, despite past volatility, will stabilise and the industry may face less intense focus. With big pharma’s MFN pricing deals with the current administration behind them and with the administration’s messaging that if those compa- nies invest in onshore manufacturing, they would be free from additional tariffs, there was growing opti- mism of brighter days ahead. However, other com- mentators remained concerned that uncertainties of MFN application to the many companies that have yet to enter into agreements with the administration, and to smaller biotechs, may plague the industry into 2026 and stymie growth and investor confidence.
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