Biotech firms favor dual IPO and acquisition strategies amid selective investor climate and Big Pharma pipeline needs.

Biotech companies are increasingly adopting a dual-track approach by preparing for IPOs while also engaging with potential acquirers, as investors have become more selective since the pandemic boom. Big Pharma is actively seeking to replenish drug pipelines ahead of major patent expirations, driving competitive acquisitions, especially for high-quality biotech assets in areas like oncology and metabolic diseases. This has led to larger deal values and a stronger exit market, although investment scrutiny remains high. The trend signals a recovery in healthcare dealmaking, with strategic buyers well-funded and eager to invest in category-leading biotech firms.