Focus on fundamentals to bounce back

EY

Lisa LaMotta, James Evans

Research

34 Pages

EY analyzes the 2025 biotech landscape, finding revenues stabilizing while financing and M&A remain subdued. With IPOs scarce and follow ons weak, companies lean on alliances, cost control, and targeted AI to extend runways and reach milestones.

Key Takeaways

Financing divides: Capital access concentrates among de risked programs while earlier stage biotechs trim spend and prioritize assets.
Deals stay selective: Large scale acquisitions remain limited as firms favor smaller strategic partnerships and alternative funding.
AI lowers costs: GenAI and agentic AI target trial design, submissions, and workflows to improve efficiency and scalability.
Sources: EY analysis, Capital IQ and company financial statement data. Chart shows percentage of biotech companies with each level of cash. Numbers may appear inconsistent because of rounding.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Biotech
Healthcare Investing: Finding Growth Beyond Pharmaceuticals
Jul 2026
Biotech
Immunology is being rewritten: why this matters for global equity investors
Jul 2026
Emerging Markets
Emerging markets tech: bubble or structural growth cycle?
Jul 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top