After years marked by high capital costs and a pronounced risk aversion among investors, a new cycle is emerging for biotech companies, as evidenced by the resurgence of merger and acquisition activity.
Insights and analysis by the experts at AURIS Finance, a corporate finance advisory firm specialising in mergers and acquisitions.
In 2025, the Nasdaq Biotechnology index rose by +33.4%. A strong performance for a sector that, until very recently, operated in a constrained environment.
The reason: investors and industrial players were particularly risk-averse, in a context of strong pressure on valuation levels and capital scarcity.
As financing and refinancing conditions stabilise, investor confidence is returning, and funds are regaining their appetite for risk. The biopharma industry’s M&A outlook shows deal volumes increasing as companies seek to replenish pipelines amidst looming patent expiries and strategic asset grabs.
Fundamentals remain intact
In 2026, the long-term growth drivers for biotechnology remain unchanged. Therapeutic needs continue to rise, driven by an ageing population, the growth of chronic diseases, and the development of increasingly personalised and differentiated treatments.
Focus on valuation
While fund risk appetite is returning, not just any biotech will secure financing. Leverage opportunities are again feasible for many biotech companies, provided that valuation models remain rigorous.
Beyond the promise and innovation potential of biotech projects, investors are now focused on companies that can demonstrate strong valuation fundamentals and de-risked clinical pathways, particularly in areas such as oncology, immunology and metabolic disease.
The companies able to raise funds are those capable of transforming their discoveries into marketable, profitable products that are sustainably integrated into healthcare systems.
From innovation to performance
Several companies have recently demonstrated this ability to meet market needs. In this respect, the case of Physidia is particularly illustrative. The French company specialises in home haemodialysis. Its offering addresses a real patient need: thanks to the monitor marketed by Physidia, patients can now carry out dialysis at home.
Since 2023, Physidia has been supported by Columna Capital, an investment fund that assists the company in its development, notably through external growth operations.
While recent years were dominated by the narrative of scientific innovation, the priority is now tangible performance. Regulatory approvals, treatment longevity, and short‑ to medium‑term cash flow generation are closely monitored by investors.
A new cycle
It is in this context that merger and acquisition activity is picking up again. Major industrial players and specialised funds are seeking innovative biotechs to rebuild their pipelines.
This search is further driven by a major upcoming milestone: by mid‑2030, many patents will expire. It is therefore crucial to rebuild pipelines, both through internal innovation and via technology acquisitions through external growth.
This dynamic restores visibility to an ecosystem that has long been fragile. For the most clinically advanced biotechs, this period marks a pivotal moment — the shift from a research‑focused model to a fully industrial logic.
Our experts at your side
Specialist funds, which had temporarily reduced exposure or extended investment horizons cautiously, are regaining a strong appetite for the biotech sector. They now seek to combine innovation with performance.
The experts at AURIS Finance are sector‑focused. Our specialists support healthcare and tech leaders and investors in their divestment, acquisition, and fundraising projects.
For further information or to discuss your project, please contact us.
