By Kimberly Kraemer, CEO, Waterhouse Brands
In 2025, fewer biotech deals are getting done, but the dollars behind them are bigger than ever. Having spent years working with emerging and fast-growth life sciences companies, I’ve seen firsthand that getting to “yes” is increasingly about more than science. It’s about reputation, credibility and the story a company tells about its value to investors, partners and employees.
The State of Biotech Dealmaking in 2025
Biotech has always been full of paradox, and this year is no different. Across licensing, M&A and financing, deal counts are trending lower. Yet the total dollar values are climbing to unprecedented levels. The market is rewarding fewer, bigger, higher-conviction bets.
- Licensing: Roughly 130 deals are projected this year, with ~$120 billion in the first half of 2025 alone—nearly double the pace of 2024. Twenty-one of these deals carried more than $100 million in upfronts, compared to just 34 of that size across all of last year.
- M&A: The first six months saw 44 transactions totaling $42–48 billion—triple the value of H1 2024.
- Venture capital: Over 600 funding rounds raised approximately $23.3 billion, with $11.2 billion going to therapeutics and drug discovery. While still substantial, both deal count and capital are down from the boom years. Alternative financing mechanisms, like royalty-based deals, are quietly gaining traction.
The lesson for biotech leaders is clear: the market has become more selective, but not less ambitious. The greater total dollar value exemplified by deals like Sanofi’s $9.5B acquisition of Blueprint Medicines further validates pharma’s continued willingness to pay for franchise expansion, speed to market and overall value created.
Three Drivers Behind 2025’s Bigger Bets
- Pipeline gaps and patent expiries: Big pharma is racing to plug revenue holes created by looming patent cliffs, with an estimated 190 drugs, including nearly 70 blockbusters, expected to lose exclusivity by 2030. Large acquisitions and licensing deals, particularly in oncology and immunology continued apace, with late-stage, validated assets commanding premium valuations.
- Scientific breakthroughs becoming de-risked: Modalities once considered high-risk—cell and gene therapy, RNA platforms, precision oncology—are maturing. Investors and pharma are increasingly willing to write nine- and ten-figure checks for programs with clear clinical readouts or regulatory milestones.
- Capital discipline and selectivity: After the frothy highs of 2021–22, both pharma BD teams and VCs are concentrating resources on fewer, higher-conviction opportunities. Structured financings are on the rise, showing that creativity is alive in biotech funding, even as traditional VC cools.
Beyond Science: Reputation as a Strategic Asset
Getting to “yes” isn’t just about the molecule or data, which are table stakes. Reputation, credibility and storytelling are now central to deal success:
- Reputation is an intangible asset: It sets companies apart in a crowded marketplace. Partners, investors and acquirers all “look under the hood.”
- Credibility compounds: Companies that consistently execute with discipline are viewed as reliable collaborators, making them more attractive targets for partnerships or acquisition.
- Narrative builds trust: Clear, credible data paired with a consistent story enhances confidence. How you tell your story—to partners, Wall Street, and patients—is as important as the data itself.
In short, reputation capital is earned long before diligence starts, and it’s a key driver of growth. At the upcoming Fierce Biotech Week Fireside chat, “Getting to Yes – the Deals Fueling Pipeline and Promise,” veteran deal makers will dissect two recent archetypal deals– licensing and M&A. Expect deeper insight into the dynamics and drivers of two very different takes on maximizing value creation.
We’ll delve into key considerations that CEOs and BD teams weigh in plotting their strategy as they engage with potential licensing or M&A partners. Having strategic clarity around what makes your company a partner of choice goes beyond the science and data. It’s about having a clear unmet need in well-defined markets and product candidates that are expected to offer significant benefit to patients.
In a selective market like 2025, those who combine scientific rigor, operational discipline and reputational savvy will be the ones getting to yes—and fueling pipelines and promise for patients worldwide.