Healthcare M&A hits $65B in Q1 2026, driven by patent expirations and innovation needs

Healthcare mergers and acquisitions surged to $65 billion in the first quarter of 2026, the highest since 2020, fueled by looming patent expirations on blockbuster drugs like Merck’s Keytruda. Pharma companies are acquiring innovative biotech firms to fill revenue gaps with next-generation therapies. Deals include Gilead’s $8.2 billion buy of Arcelix and Lilly’s $7.8 billion purchase of Cantesa Pharmaceuticals. Additionally, Indian biotech firm Anthem Biosciences, founded by Ajay Bhardwaj, has grown significantly by providing cost-effective outsourcing services to pharma companies, recently going public with a $4.5 billion market cap. The trend is expected to continue as IPO opportunities remain limited for many biotechs.