How can biopharma keep its balance?

EY

James Evans, Harish Kumar

Research

43 Pages

EY examines how biotechnology companies are balancing strong industry fundamentals against financing constraints, policy uncertainty, patent expirations, and increasing competition. Industry revenue reached a record US$232 billion in 2025, but capital and strategic investment remain highly selective.

Key Takeaways

Revenue Growth: Biotech revenue increased 13% to US$232 billion in 2025, while companies generating over US$500 million in sales reached a record 72.
Financing Divergence: Biopharma raised US$68.5 billion in 2025, but only 45% of emerging biopharma companies had more than two years of cash remaining.
Larger Deal Focus: Transactions above US$5 billion represented 59% of M&A spending in 2025, exceeding the five year average of 51%.
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