Andy Acker, Portfolio Manager for healthcare and biotech strategies at Janus Henderson Investors, notes that despite interest rates remaining higher than markets anticipated at the start of the year, the momentum behind biotech deal-making continues to build. During the first half of 2026, both the value and the scope of transactions rose markedly, reflecting a further uptick in overall industry activity.
Acker highlighted that the sustained pace of acquisitions underscores the vital role biotech plays in driving healthcare innovation. Notably, many of these deals are centered on small and mid-cap biotech firms with promising clinical development pipelines—precisely the segment where his team continues to uncover attractive investment opportunities. With major pharmaceutical companies facing the loss of hundreds of billions of dollars in drug revenue over the coming years due to patent expirations, he believes demand for differentiated biotech assets will remain robust.
Beyond M&A, the initial public offering (IPO) market for biotech companies has also rebounded significantly, with the second quarter recording two of the largest biotech IPOs in history. A healthier funding environment is bolstering the broader biopharmaceutical ecosystem, supporting future drug discovery and innovation while also creating new opportunities for companies providing research tools and specialized services.
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