EY 2026 Biotech Beyond Borders Report: Biotech Revenue Surges 13% to $232 Billion Amid Financing Paradox and M&A Rebound
核心洞察
The biotech industry posted its third consecutive year of growth in 2025, with aggregate revenues climbing 13% to US$232 billion and a record 72 companies surpassing US$500 million in revenue.
Total biotech financing reached US$68.5 billion in 2025, up 11% from 2024, yet a growing number of biotechs remain caught in a liquidity trap despite record megarounds.
M&A deal value hit US$99.7 billion in 2025, with oncology leading at approximately US$16.8 billion and neurology close behind at roughly US$14.4 billion in deals exceeding US$1 billion.
The global biotechnology industry delivered its third consecutive year of revenue growth in 2025, with aggregate revenues climbing 13% to US$232 billion, according to the 36th edition of the Ernst & Young LLP (搜索) Biotech Beyond Borders Report released June 9, 2026. A record 72 companies generated over US$500 million in revenues, underscoring the sector's fundamental strength even as macroeconomic headwinds, geopolitical disruption, and looming patent cliffs continue to test the industry's resilience.
"Biotech's activity levels in 2025 point to encouraging signs of market recovery, though uncertainty continues due to macroeconomic headwinds," said Ashwin Singhania, Principal, Life Sciences, EY-Parthenon, Ernst & Young LLP (搜索). "Encouragingly, we're seeing sustained momentum in 2026, as licensing and M&A volume and value continue to increase, IPOs continue to launch and there are some signs of recovery in venture capital funding."
Financing Landscape: A Tale of Two Biotechs
Total biotech financing reached US$68.5 billion in 2025, representing an 11% increase from 2024. However, the report highlights a striking paradox: while a record number of megarounds are being signed, a growing number of biotechs find themselves caught in an ongoing liquidity trap. This divergence has deepened the long-standing division between the industry's haves and have-nots.
Fundraising by biotechs outside the commercial leaders group reached US$58.9 billion — the highest level seen since 2021. Follow-on financings rebounded to 34%, led by major financing rounds particularly for orphan disease and immunology-focused biotechs, a notable recovery from concerns that plagued this category in 2024.
Venture capital activity reinforced the bifurcation. Total VC investment reached US$20.6 billion, disproportionately concentrated in late-stage deals, which accounted for US$10 billion from 254 rounds. Early-stage value and volume both declined. The industry generated an additional US$4.3 billion in VC investment in the first quarter of 2026, with several major rounds closing despite ongoing business uncertainty.
The IPO market, however, remained under pressure. Equity capital markets were constrained in 2025, and the IPO market declined approximately 47% compared with 2024. While IPO activity has picked up in early 2026, external challenges persist, including the rise of China as an outsourcing hub for early-stage innovation and questions surrounding budgeting and ongoing support from the National Institutes of Health under the current US administration.
M&A Activity: Larger, Higher-Conviction Deals
Dealmaking in 2025 remained disciplined, skewing toward targeted acquisitions over broad, transformational megamergers. Total M&A deal value reached US$99.7 billion, and momentum accelerated into early 2026, with first-quarter deal value accounting for 36% (US$36 billion) of the 2025 total. The average deal size reached approximately US$2.7 billion, signaling a shift toward larger, higher-conviction transactions.
Oncology led M&A by deal value, accounting for approximately US$16.8 billion in deals exceeding US$1 billion. Neurology followed as a close secondary driver, contributing roughly US$14.4 billion in large transactions.
Emerging Innovation: China and AI
The report identifies two major forces shaping innovation sourcing. Thirty-nine percent of US biobucks flowed to China, while more than 88% of biobucks AI investment concentrated in R&D — primarily in drug target identification, drug design, and clinical trial patient recruitment. In 2026, expanding R&D investments in China and AI models are poised to fuel a new wave of innovation.
Regulatory and Manufacturing Dynamics
The shifting political landscape in 2025 created a push toward repatriating manufacturing capacity, with industry leaders pledging upward of US$370 billion to domestic manufacturing. This shift offers resilience against tariffs but requires balancing increased capital expenditure commitments, costs of goods sold, regional partnerships, and hybrid supply models.
Companies are also pioneering new financing models — including synthetic royalty agreements and innovative contracting structures — to adapt to ongoing market pressures from patent cliffs and cost constraints. Portfolio diversification through alliances and acquisitions has become a necessary growth lever as intensifying market dynamics and loss of exclusivity reshape competitive landscapes.
"Biotech has consistently shown its resilience to successfully navigate the unknowns," said Arda Ural, PhD, EY Americas Life Sciences Leader. "With valuations surpassing twice the S&P 500, the majority of approved products classified as first in class and a pressing secular need for biopharma to grow inorganically to offset patent expirations, I see a rather positive outlook for the biotech sector."
The report concludes that while unpredictable challenges will continue to develop, the industry must prioritize maintaining its balance to keep advancing, leveraging the tailwinds of 2025 to stay alert and agile in a rapidly changing business environment.