Biotech deal value hits $78B in H1 2026 but buyer capacity is shrinking, slowing future M&A pace.

Biotech mergers and acquisitions reached $78 billion in the first half of 2026, surpassing the entire 2025 total of $42 billion, driven by several large deals over $5 billion. Despite strong structural drivers like patent expirations and cash reserves in big pharma, the pool of buyers is shrinking as top acquirers have spent much of their capacity. This limits the pace of future deals, though companies like Merck, Novo Nordisk, and AstraZeneca still have firepower. RBC Capital Markets expects M&A activity to continue but at a slower rate than the recent surge.