Big Pharma faces $300B patent loss, fueling a surge in biotech deals in 2026.

Big pharmaceutical companies are confronting a $300 billion loss in drug patents by 2030, prompting a surge in acquisitions of mid-size biotech firms with promising drug pipelines. In 2026, biopharma deal values are expected to exceed $250 billion, the highest since 2019, driven by a preference for smaller biotech buyouts over blockbuster mergers due to regulatory scrutiny. The ALPS Medical Breakthroughs ETF (SBIO) focuses on these mid-size biotechs, recently adding 37 companies amid a wave of trial results and takeover news. Regulatory shifts, such as the FDA's more flexible approval path for serious diseases, are also encouraging biotech investments and capital raises.