Key highlights from May:

• Large pharma continues to outperform the broader Life Sciences industry as investors focus on de-risked, cash flow generating companies; small- and micro-cap biotech have seen continued pressure on their stocks but have slightly narrowed the gap with big pharma
• The number of M&A and licensing transactions picked up slightly in May; 6 M&A and 17 licensing transactions were announced this month, versus 4 M&A and 15 licensing transactions announced in April of 2025, with two major licensing transactions that surpassed $1bn in upfront payments
• Another month has passed with no biopharma IPOs, while 4 currently remain on file
• Follow-on market picked up with 8 priced deals in May raising an aggregate of $579mm vs. $460mm in April
• Biotech ‘zombies’ face mounting pressure to liquidate or restructure under activist scrutiny, as iTeos shut down following its TIGIT failure and Keros slashed 45% of its workforce after discontinuing its PAH program
• The FDA unilaterally amended industry-friendly COVID-era guidelines advising all healthy adults and children to get the COVID vaccination
• The White House issued a “Most Favored Nation” executive order, requesting biopharma companies to match drug prices to those in ex-US markets; although framed as a request, and not an official demand, there remains the possibility of further pressure from the White House if companies fail to comply