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Biotech Deals

Biotech Deals Alert

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Most favored nation policies, tariffs and FDA turnover couldn't impede Big Pharma's need to seize on growth opportunities this year, says McKinsey partner Bart Van de Vyver. 

Geneva-based Van de Vyver advises U.S. and European pharma companies on M&A strategies.

What's next: The current momentum is driving enthusiasm for more dealmaking in Q1 of 2026, particularly around the JPMorgan Healthcare Conference in January.

Zoom out: The biotech industry's comeback in the last half of the year has sent stocks and hedge fund returns soaring.

By the numbers: The Nasdaq Biotechnology Index is up 31% this year, outpacing the Nasdaq composite, up just 20% over the same time period.

This interview has been lightly edited for length and clarity.

What do you see when you look back at 2025?

"It was a strong start to the year. Then a little more normal. But certainly in the last couple of months, [there's been] a clear uptick in the number of sizable deals."

"That has to do with the fact that the loss of exclusivity for the majority of pharma companies has either [put] short or at least midterm holes in their pipeline."

The Nasdaq biotech index is hitting all-time highs. Is it possible stocks are overvalued, and what would that mean for M&A?

"We don't necessarily see that as an impediment to deals. If there's any index which trades partly on the potential for acquisitions, it probably is the Nasdaq biotech."

Why hasn't less-than-ideal U.S. health care policy been a bigger obstacle to M&A?

"You need a particularly adverse environment for pharma companies not to be interested in mid- and late-stage attractive innovation, of which there is still plenty.

Now people are saying, 'We won't get much more clarity than what we have, and the strategic reasons for us to pursue M&A are still there, so we may as well go out and do the deals.'

What is consistent across the industry is the view that the U.S. market continues to be one of the most attractive markets in sheer size or pharmaceutical innovation.

We certainly don't see people turning their backs on the U.S."

There were more deals involving a Chinese company or asset this year. What's been unique about these transactions?

"At least at the $2 billion-dollar-range, these tend to be licensing deals, not acquisitions. 

But we've seen half a dozen deals with deal value, including milestone payments in excess of $2 billion, involving a Chinese counterpart, which is more than we've seen ever before."

"Part of that, of course, reflects that more and more of the global pipeline is China-originated.

More and more of the trials are conducted in China, and so we do expect that trend to continue in the years to come."

McKinsey's Bart Van de Vyver on what's driving the biotech rally

Strong index gains show momentum across biotech.

Photo illustration of Bart Van de Vyver, collaged with the McKinsey & Company logo.

Photo illustration: Axios Visuals. Photo: Courtesy of McKinsey & Company

Most favored nation policies, <a class="gtmContentClick" data-vars-link-text="tariffs" data-vars-click-url="https://www.axios.com/pro/biotech-deals/2025/04/16/pharma-tariffs-dealmaking-biotech" data-vars-content-id="6552bbd9-e57c-451a-9123-62a8d7369cba" data-vars-headline="McKinsey&#x27;s Bart Van de Vyver on what&#x27;s driving the biotech rally" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/biotech-deals/2025/04/16/pharma-tariffs-dealmaking-biotech" target="_self">tariffs</a> and <a class="gtmContentClick" data-vars-link-text="FDA turnover" data-vars-click-url="https://www.axios.com/pro/biotech-deals/2025/12/05/biotech-dealmaking-fda-turmoil" data-vars-content-id="6552bbd9-e57c-451a-9123-62a8d7369cba" data-vars-headline="McKinsey&#x27;s Bart Van de Vyver on what&#x27;s driving the biotech rally" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/biotech-deals/2025/12/05/biotech-dealmaking-fda-turmoil" target="_self">FDA turnover</a> couldn&#x27;t impede Big Pharma&#x27;s need to seize on growth opportunities this year, says McKinsey partner Bart Van de Vyver. <ul><li>Geneva-based Van de Vyver advises U.S. and European pharma companies on M&amp;A strategies.</li></ul>What&#x27;s next: The current momentum is driving enthusiasm for more dealmaking in Q1 of 2026, particularly around the JPMorgan Healthcare Conference in January.

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McKinsey's Bart Van de Vyver on what's driving the biotech rally

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