Global pharmaceutical dealmaking surged in 2025 and is set to intensify further in 2026, driven by Chinese contributions, technological innovation, and high capital availability, as industry players race to secure future revenues amid geopolitical and regulatory challenges.
Life‑science dealmaking that picked up steam in 2025 shows clear signs of intensifying further in 2026 as major drugmakers race to replace revenues threatened by looming patent expiries and to secure next‑generation technologies.
Last year’s jump in transaction value was driven less by a flurry of small deals than by a handful of very large acquisitions. According to EY, global life‑sciences M&A reached about $240 billion in 2025, an increase of roughly 81% year‑on‑year, with a smaller number of transactions but much larger ticket sizes. Industry data from IQVIA shows therapeutic targets widening beyond the usual suspects, with central nervous system, cardiovascular‑renal‑metabolic, oncology, respiratory and immunology representing the largest shares by deal value.
Several blockbuster agreements underpinned the surge. Big pharma completed roughly 20 major purchases during the year, including multi‑billion dollar moves in diagnostics, RNA and obesity therapies. Novartis emerged as a particularly active buyer and analysts say a steady pipeline of large, transformational buyouts is likely to shape 2026 dealmaking as companies seek to shore up portfolios and diversify modality exposure.
China’s rising role in the global innovation ecosystem is a defining feature of the recent wave and is expected to be a central axis for deals this year. Multiple industry accounts record a striking expansion of Chinese contributions to novel pipelines and cross‑border partnerships. According to SinoDrugWatch, Chinese biotechs executed numerous out‑licensing arrangements in 2025 that together represented tens of billions of dollars in potential value, with oncology dominating much of that activity. Trial and investment tracking reported by MedPath shows global pharma committed about $48.5 billion to partnerships with Chinese companies in the first half of 2025 alone, already exceeding the prior year’s total, with dozens of deals topping the billion‑dollar mark.
Market watchers and participants point to several forces behind China’s ascent: faster, lower‑cost early‑stage trials; a growing pool of indigenous scientific expertise; and an expanding set of complex modalities, including antibody‑drug conjugates, bispecifics and cell‑ and gene‑based therapies. Axios notes that the country’s progress has moved it from a generics‑centric role to one where original, high‑quality drug innovation is increasingly exported through licensing and M&A, with Chinese assets claiming a growing portion of global deals.
“China’s biotech companies are increasingly recognised as key contributors to the global innovation ecosystem, and the trend of exporting innovation through out‑licensing and M&A transactions is ever‑increasing, with a number of landmark, multi‑billion dollar deals in 2025. There have also been increasing numbers of leading China‑based biotech companies completing new rounds of financing as they reach milestones and technical breakthroughs, and sale or out‑licensing of assets has also become a popular and recognised way of monetisation. Observing the increasing global acceptance of China‑originated assets as demonstrated in the past a few years, I expect that such trends of out‑licensing and M&A activities involving China‑based biotech companies by leading global pharma companies will continue to boom in 2026,” said Ning Zhang, Partner, Morgan Lewis.
Buyers are not only chasing assets but also new modalities. Evaluate and other analysts highlight biologics, advanced modalities and emerging mechanisms , such as targeted protein degraders, novel RNA approaches and next‑generation immuno‑oncology programs , as primary targets for investment. Cell and gene therapies remain high on acquisition wish‑lists despite the clinical and manufacturing complexities they present.
The availability of capital is supporting these ambitions. EY estimates roughly $2.1 trillion of corporate and investor firepower in the life‑science ecosystem entering 2026, giving bidders scope to pay premium valuations even as competition intensifies. That dynamic, together with geopolitical tensions, pricing pressures and evolving regulatory environments, is shifting boardroom focus from whether to pursue deals to how to execute complex cross‑border transactions while managing integration risk.
Cross‑border activity is expected to remain particularly prominent in APAC. Citi and other financiers forecast rising deal flow in the region, with Japan and China notable sources of both targets and outbound transactions. Several large Asia‑Pacific deals in 2025, from domestic consolidations to acquisitions aimed at strengthening ADC capabilities and manufacturing capacity, illustrate the regional diversity of deal rationales.
Despite the enthusiasm, voices within the industry caution that rapid expansion carries risks. Former US regulators and some ecosystem observers warn that aggressive licensing of China‑originated compounds by Western firms could have unintended effects on domestic innovation hubs and raise policy questions about supply chains and strategic dependence. Goldman Sachs and other analysts nonetheless underline that a growing share of new drug development is now originating in China, and international companies are increasingly treating Chinese innovation as a primary source of late‑stage assets.
Looking ahead, the market faces a set of practical questions: will 2026 replicate last year’s heavy concentration of value in a few headline deals, or will acquisitive activity broaden across more mid‑sized transactions; and to what extent will buyers prioritise platform technologies over single‑asset purchases? For now, the combination of abundant capital, rising Chinese innovation and buyer urgency to fill pipelines sets the stage for another active year of strategic transactions across the global pharmaceutical industry.
- https://www.biospectrumasia.com/analysis/25/27140/pharma-ma-set-to-boom-in-2026-.html – Please view link – unable to able to access data
- https://www.axios.com/2026/01/30/trump-china-fda-nih-drugs – China has entered a new phase in pharmaceutical innovation, significantly advancing its capabilities in producing cutting-edge drugs and increasingly challenging the United States’ longstanding dominance in the industry. A key development underscoring this shift is AstraZeneca’s recent multi-billion dollar deal with China’s CSPC Pharmaceuticals to acquire global rights (excluding China) to early-stage experimental obesity and diabetes medications. This reflects China’s evolution from primarily producing generics to developing high-quality original drugs. The trend is driven in part by the lower cost and faster pace of early-stage clinical trials in China compared to the U.S. As a result, Chinese pharmaceutical companies are securing a growing share of global deals—17% in the first three quarters of 2025, up from 6% in 2020, according to Bain. While the U.S. remains the biggest pharmaceutical market due to its high drug prices, the global landscape is shifting quickly. American companies are responding with increased investments in China and exploring ways to speed up innovation domestically amid federal health system changes. The rise of China in biopharma presents both opportunities for global healthcare and competitive challenges for the U.S. industry.
- https://www.sinodrugwatch.com/chinas-60b-out-licensing-boom-in-2025-positions-biotech-as-global-powerhouse-in-oncology-obesity/ – By August 29, 2025, Chinese biopharmas struck nearly 80 out-licensing deals worth $2.6 billion upfront and $31 billion in potential milestone value—more than Japan, Korea, and India combined. With projections pointing to 150+ deals and $60 billion+ in total value by year-end, China has emerged as the single largest source of novel pipelines outside the U.S. This reflects a decisive shift: Chinese innovators are no longer just importing technology but exporting globally competitive therapies across oncology, immunology, and metabolic diseases. Key Trends: Oncology Dominates, Modalities Diversify, AI Accelerates Oncology remains the anchor, accounting for over half of projected deal value. Within oncology: Antibody-drug conjugates (ADCs) led several billion-dollar partnerships (Evopoint–Astellas, DualityBio–Avenzo, Simcere–AbbVie). Bispecific antibodies and T cell engagers (TCEs) surged, with Pfizer–3SBio’s $6B PD-1/VEGF deal and multiple BCMA/CD3 programs (KeyMed, Genrix, Harbour BioMed).
- https://trial.medpath.com/news/da02c49799a54c1a/global-pharma-investment-in-china-surges-to-48-5-billion-in-first-half-of-2025-doubling-2024-total – Global pharmaceutical companies invested $48.5 billion in partnerships with Chinese biotechs during the first half of 2025, surpassing the entire 2024 total of $44.8 billion. The surge included 61 deals in H1 2025, with 16 exceeding $1 billion in value and five surpassing $3 billion, indicating a trend toward larger, more strategic partnerships. U.S. companies dominated the deal landscape, representing 61% of partnerships compared to 37% in 2024, with oncology remaining the top therapeutic area. Global pharmaceutical companies have dramatically accelerated their investment in Chinese biotechnology partnerships, committing $48.5 billion in the first half of 2025 alone—a figure that already exceeds the entire 2024 total of $44.8 billion. This unprecedented surge in cross-border collaboration signals a fundamental shift in how multinational pharma companies are approaching innovation sourcing and market expansion strategies.
- https://www.axios.com/2025/05/29/china-biotech-boom-us-drug-trials – China has overtaken the U.S. in biotechnology research and development, now leading in global clinical drug trials with over 7,100 trials listed in 2024 compared to the U.S.’s 6,000. This shift stems from a decade-long national strategy by China to become a powerhouse in biopharmaceuticals, supported by lower labor costs and fewer regulatory hurdles. As a result, about 37% of licensed drug compounds by major pharmaceutical companies are now sourced from China—a trend expected to grow. A notable example is Summit Therapeutics’ Chinese-licensed immunotherapy surpassing Merck’s Keytruda in treating advanced lung cancer. Former FDA Commissioner Scott Gottlieb warns that U.S. firms licensing Chinese innovations may detract from domestic biotech ecosystems like Boston and North Carolina. Analysts are also watching to see if ongoing trade tensions prompt China to further invest in biotech to mitigate U.S. economic risks.
- https://www.expertmarketresearch.com/healthcare-articles/healthcare-biotechnology-mergers-and-acquisitions-outlook – Novartis Expands Rare Disease Portfolio with USD 12 Billion Acquisition of Avidity Biosciences On October 26, 2025, Novartis announced that it has reached an agreement to acquire U.S.-based biotech company Avidity Biosciences in a deal valued at approximately USD 12 billion in cash. Under the terms of the transaction, Avidity shareholders will receive USD 72 per share, representing a 46% premium over the company’s closing share price on the previous Friday. The acquisition underscores Novartis’s strategic focus on rare muscle disorders, an area with significant unmet medical needs. To facilitate the deal, Avidity will spin off its early-stage precision cardiology programs into a new, publicly traded entity called Spinco, ensuring continued development of those assets. This move is part of Novartis’s broader effort to counter the impact of its upcoming patent expirations for key blockbuster drugs, including Entresto (for heart failure), Xolair (for asthma), and Cosentyx (for autoimmune conditions). By acquiring Avidity, Novartis aims to broaden its rare disease pipeline and strengthen its leadership in innovative therapies for conditions with limited treatment options. The agreement is expected to close in 2026.
- https://www.goldmansachs.com/insights/articles/china-is-increasing-its-share-of-global-drug-development – China’s biopharma industry is playing an increasingly important role in the development of innovative drug candidates for cancer and other diseases. International drug companies recognize the increased pace of innovation, and China has accounted for half of global licensing deals this year by dollar value. China is becoming an innovator in more complex treatments. Some 46% of all new drug molecules that began human trials in the first half of this year originated in Chinese biopharma companies.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on January 31, 2026, making it current. However, similar analyses have appeared in other publications, such as a December 2025 report by GlobalData highlighting a 31% increase in pharma M&A deal value year-on-year. ([globaldata.com](https://www.globaldata.com/media/business-fundamentals/pharma-ma-deal-value-soars-31-yoy-in-2025ytd-amid-return-of-mega-deals-reveals-globaldata/?utm_source=openai)) This suggests that while the article is fresh, the narrative has been discussed in the industry for some time.
Quotes check
Score:
7
Notes:
The article includes a quote from Ning Zhang, Partner at Morgan Lewis, stating, “China’s biotech companies are increasingly recognised as key contributors to the global innovation ecosystem…” A search for this quote reveals it was used in a December 2025 article on Drug Discovery Trends. ([drugdiscoverytrends.com](https://www.drugdiscoverytrends.com/pharma-ma-china-deals-and-glp-1s-what-to-watch-in-2026/?utm_source=openai)) This indicates the quote may have been reused, raising concerns about originality.
Source reliability
Score:
6
Notes:
BioSpectrum Asia is a niche publication focusing on the life sciences sector. While it provides industry-specific insights, its reach and influence are limited compared to major news organisations. This raises questions about the independence and potential biases of the source.
Plausibility check
Score:
8
Notes:
The article’s claims align with industry trends, such as the projected $240 billion in pharma M&A deal value in 2025 and the increasing role of Chinese biotech companies. However, the reliance on a single source (BioSpectrum Asia) without corroboration from other reputable outlets diminishes the credibility of these claims.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents a timely analysis of the projected boom in pharmaceutical M&A activity in 2026. However, the reuse of quotes, reliance on a single niche source, and lack of corroboration from other reputable outlets raise significant concerns about the originality and credibility of the content. These issues necessitate further verification before publication.