How can biopharma keep its balance?

EY Biotech Beyond Borders Report 2026

This year’s report examines an industry trying to find a balanced path forward between major opportunities and significant challenges.

In the 36th annual EY Biotech Beyond Borders report, long-range observations find the industry’s fundamentals remain very strong. In 2025, the biotech industry hit US$232b in revenues; with a record 72 companies generating over US$500m in sales. However, emerging companies are continuing to feel the financing squeeze, with cautious strategic investment into the sector, and the wider biopharma industry still dealing with looming patent cliffs and cost pressures.

Up 11% to US$68.5b
Biopharma raised US$68.5b overall in 2025, up 11% in 2024.

Market capitalization reached US$1.65t
Biotech market capitalization increased by 28.8% to reach US$1.65t, with the industry’s total raised capital also increasing by 26%.

Deals of US$5b+
Average deal size reached its highest level in five years, and deals of US$5b or more in value accounted for 59% of spend, compared to a five-year average of 51%.

EY Biotech Beyond Borders 2026

Learn about the industry triumphs and challenges in this year's report, both in our analysis and in the range of voices from industry and its stakeholders.

Download the PDF

Finding the right portfolio balance to offset patent expiries and pricing market uncertainties

Challenge: Companies need to understand and maintain the balance between organic and inorganic portfolio strategies … between different geographical and technological sources of innovation opportunity … between the search for robust financial efficiency and the need for novel partnering models to push innovation forward … and between the goals and priorities of the US administration and other policymakers.
Opportunity: The industry’s strong performance throughout the disruptions of the past year shows that biotech has the creativity, imagination and determination to meet these challenges successfully.
Learn more about the industry triumphs and challenges in this year's report.
Download the report

Analyzing the risk and rewards from emerging sources of innovation

Challenge: The industry’s innovative engines continue firing on all cylinders, with first-in-class products reaching the market. And biopharma has realized the potential to accelerate innovation. Widening the search for best-in-class R&D into historically less-established geographies and newer technologies such as the AI drug discovery engines being refined by TechBio leaders, opens new paths for the industry to develop and commercialize innovations more rapidly.
Opportunity: Staying at the forefront of innovation requires biopharmas to balance the potential for faster results and the risks involved in leaning into new sources of innovation for the future.
Learn more about the industry triumphs and challenges in this year's report.
Download the report

Balancing growth strategies against the realities of a tougher financing environment

Challenge: VC continues to flow in, with US$20.6b raised in 2025, while 2026 saw some early major rounds and encouraging signs of revival in the IPO market. Emerging biopharma are also pioneering new financing models, including synthetic royalty agreements and innovative contracting structures.
Opportunity: The innovative capabilities of biotech are well-established — now companies need to become equally creative in redesigning financing models to secure the future of the industry.
Learn more about the industry triumphs and challenges in this year's report.
Download the report

Evaluating global commercialization strategy against the changing regulatory dynamics of the current political landscape

Challenge:nbsp;Policy changes affecting the wider biopharma landscape and also changing the operating environment for biotech are ongoing, from pharmaceutical tariffs to downward pressure on prices to the onshoring drive. Wider policy commitments, including geostrategic moves which may increase pressures on supply chains, including energy prices and access to raw materials, are also a continuing concern for the sector.
Opportunity:nbsp;Companies need to consider how to balance, 1) portfolios to offset patent expiries with new pipeline assets and find the right mix of modalities and therapeutic areas to thrive, 2) future sources of innovation and leveraging the opportunities of AI to accelerate R&D, 3) the current financing pressures and demands, and 4) strategy across geographies, making use of global opportunities.
Learn more about the industry triumphs and challenges in this year's report.
Download the report

For more information

Ashwin Singhania

Ashwin Singhania
Principal, Life Sciences Strategy, EY-Parthenon

Diana Hoff

Diana Hoff
EY Americas Life Sciences Sector Leader, Partner, Ernst & Young LLP