In 2025, we were privileged to work with our clients on some of their most transformative financing, licensing and M&A transactions. We guided clients on complex transactions involving the full spectrum of deal sizes, structures and complexity, including deals in the biopharmaceutical, drug discovery and enterprise healthcare sectors, among others.

As we look ahead to 2026, we are closely monitoring several themes shaping the dealmaking environment:

• Precision-led, asset-centric M&A to backfill pipelines and offset loss of exclusivity
  Dealmaking will focus on distinctive science and late‑stage or near‑launch assets in oncology, immunology, cardiometabolic, and CNS. Buyers will prioritize clean safety profiles, line‑of‑sight to pivotal data, and credible launch plans. Premiums for differentiated innovation will remain high as patent‑cliff pressures and asset scarcity intensify. With major drugs losing exclusivity, large pharmas will use targeted acquisitions to fill portfolio gaps.
• Broader use of alternative structures and private capital to bridge risk
  Royalty deals, earn‑outs, options, minority stakes, and staged structures will continue to manage technical, regulatory, and reimbursement risk. Private equity and structured financing are now mainstream tools to extend runway from late‑stage development to commercialization. With valuation volatility persisting, milestone‑driven earn‑outs and licensing are helping move deals forward without sacrificing governance or returns.
• Cross-border licensing and co-development especially China-to-West becomes standard
  Western pharma is expanding China‑to‑the‑West partnerships through structured licenses, regional rights, and stronger data/IP governance to manage security and supply‑chain risks. China’s biotech sector is generating first‑in‑class assets and out‑licensing at scale, supported by regulators’ acceptance of multi‑regional clinical trial data. Expect more cross‑border deals in 2026, with co‑development and regional commercialization models accelerating global execution.
• AI-enabled diligence and post-close value creation become table stakes
  AI is shortening diligence cycles by improving assessments of technical and regulatory success, safety, value forecasts, and integration plans—enabling faster, cleaner bids. In 2026, investment will shift from pilots to embedded AI across R&D, manufacturing, and commercial integration. Winning teams will use analytics from pre‑deal through integration to link capital to clinical data and accelerate value capture.
• Policy, pricing, and geopolitics reshape deal modeling and valuation
  MFN‑style pricing proposals, tariffs, FDA restructuring, and EU policy shifts are prompting teams to model a wider range of pricing, approval, and supply‑chain scenarios. MFN‑driven changes could compress U.S. price realization and influence launch sequencing, with Medicaid participation and spillover effects under close watch in 2026. Rising cross‑border scrutiny—especially around China licensing and API sourcing—is increasing diligence on IP, footprint, and tariff exposure.

We are proud to highlight some of our life sciences clients’ 2025 transactions and look forward to supporting their strategic transactions in 2026.

View our full Life Sciences: 2025 Deal Highlights, including our highlights and what we’re watching in 2026.