Biopharma enters 2026 with renewed and cautious optimism, says GlobalData

New Delhi: Against the backdrop of a turbulent year marked by both breakthrough and setbacks, the biopharmaceutical industry is entering 2026 with renewed confidence. Industry optimism and investment sentiment have strengthened, although cautiously, according to a new report by GlobalData, a leading intelligence and productivity platform.

In 2025, the biopharmaceutical industry began the year with strong scientific and commercial momentum with a high level of optimism with large deals seen around the JP Morgan Healthcare conference, including Johnson & Johnson’s $14.6 billion acquisition of Intra-Cellular Therapies for its neuroscience portfolio, as well as GSK’s $1 billion deal with IDRx, and Eli Lilly acquiring an oncology drug candidate from Scorpion Therapeutics for $2.5 billion.

Hannah Hans, Head of Pharma Strategic Intelligence at GlobalData, comments: “However, industry sentiment quickly turned cautious. Q2 2025 saw the biopharma industry adopt a more guarded stance. Announcements of US drug pricing reforms under the Most Favoured Nation (MFN) policy, tariffs, and trade uncertainties, combined with the looming patent cliffs, and rising costs collectively drove a more cautious outlook.”

Companies recalibrated in response to these pressures, and by Q3, they had adjusted cost structures and clarified development priorities. In addition, several large pharma companies engaged with the Trump administration to reach deals on drug pricing. The sector saw major deals with Pfizer outbidding Novo Nordisk to re-enter the obesity market with Metsera’s clinical-stage GLP-1 receptor agonist and amylin analogs, and Novartis acquiring Avidity to strengthen its neuromuscular disease portfolio. Out-licensing activity continued, highlighted by GSK’s $12.5 billion licensing deal with Jiangsu Hengrui reinforcing the growing strength and global relevance of innovation from China.

In November, the Jefferies Healthcare 2025 conference provided a valuable temperature check on the industry’s appetite for deals. Executives projected confidence about the opportunities and market outlook for 2026, while acknowledging the larger acquisitions Merck and Pfizer completed earlier in the year. They highlighted strong interest in breakthrough, innovative early science and the need for differentiating later-stage companies with promising results. Meanwhile, the Nasdaq Biotech Index, reflected the renewed levels of optimism, showcasing its strongest performance since 2014.

Looking ahead at 2026, these sentiments are reiterated, according to GlobalData’s latest report, “The State of the Biopharmaceutical Industry 2026”. As per the report’s survey, 52% of pharmaceutical professionals felt optimistic or very optimistic about the industry’s growth in 2026, which is up by 10% compared to data gathered six months ago.

Additionally, 39% of the surveyed pharmaceutical industry professionals reported being optimistic or very optimistic on the recovery of biotech funding in the next 12 months, an increase by 15% from results seen in May 2025. This reflects a slightly more positive outlook compared to earlier in the year, which could be due to clarity on external factors such as MFN, tariffs, as well an increase in deal activity.

Hans concludes: “As we look to 2026, strong drug pipelines and breakthrough clinical catalysts will drive the sector, as pricing pressures are addressed, innovation and differentiation will take centre stage, and strategic deals accelerate growth and portfolio transformation.”

*GlobalData’s surveyed a total of 126 GlobalData Biopharmaceutical clients and prospects, which was fielded from September 28, 2025, to November 8, 2025