Key highlights from July:

• Small and mid-cap biotechs have continued to narrow the gap with large pharma, while micro-caps outperformed the rest of the industry
• The number of M&A and licensing transactions stayed constant in July; 8 M&A and 27 licensing transactions were announced this month, versus 8 M&A and 25 licensing transactions announced in June of 2025, with two major M&A transactions that surpassed $1bn in deal value: Merck/Verona ($10.0bn) and Sanofi/ViceBio ($1.6bn)
• Five high-value licensing deals exceeded $1bn, all focused on early-stage programs across various therapeutic areas including oncology, immunology, cardiometabolic and pulmonology
• IPO activity continues to be inactive, with more than 12 weeks since the last biopharma IPO
• Follow-on market stayed constant with 18 priced deals in July raising an aggregate of $2.2bn vs. $2.7bn in June, led by Abivax’s $650mm offering
• Leadership shifts at the FDA drew attention, as Vinay Prasad resigned from CBER following political pressure and George Tidmarsh was named as director of CDER
• Novo Nordisk’s shares fell significantly this month, as Lilly’s Mounjaro and Zepbound take over market share on the back of superior safety and efficacy data