Biotech firms surge ahead with $106 bn in acquisitions as patent cliff approaches

From January to the end of May 2026, the global biotechnology sector completed 201 mergers and acquisitions worth an estimated $106 billion, with the average deal value rising to about $527 million. Analysts warn that if this pace continues, total deal volume could exceed $250 billion for the year, the second‑largest total on record after 2019.

The looming "patent cliff" – the imminent loss of patent protection for drugs generating over $200 billion in annual revenue – is driving companies to pay premiums of 38 % to 140 % for strategic assets. Notable transactions include Eli Lilly’s purchase of Centessa for more than $8 billion, Gilead’s $7.8 billion acquisition of Arcellx, Merck’s $6.7 billion takeover of Terns Pharmaceuticals, and Pfizer’s $10 billion bid for the obesity drug Metsera. AstraZeneca announced a partnership with China’s CSPC on eight next‑generation obesity and type‑2 diabetes programs, while Eli Lilly bought three vaccine firms for a total of $3.8 billion. Oncology, obesity treatments, RNA‑based therapies, gene therapies and rare‑disease drugs remain the most active segments despite broader market uncertainty.