Skip to Content
Jump to the top of the page

Investment Banking

The Quarterly Rx: Q2 2025 U.S. Biopharma Recap

The second quarter was another rollercoaster period for biopharma, opening with “Liberation Day” and closing amid mounting macro and geopolitical uncertainty. While the sector continues to lag broader healthcare, investor sentiment showed early signs of stabilization. The XBI and NBI posted mid-single-digit gains, trimming YTD losses to ~9% and ~2.6%, respectively.

Financing activity remains constrained with total capital raised across privates and publics down 53% YoY. April marked a low for activity and Q2 marked the first quarter since the Great Financial Crisis without a single IPO. As the IPO window remains unclear, “crossover” activity also thinned with only seven deals announced and average size dipping below $100 million for the first time since Q4 2020. Follow-ons and structured financings (PIPEs/RDs) were hit hardest with only 28 deals announced, the lowest since Q1 2022, as activity remained concentrated around key clinical and regulatory milestones.

Reverse merger activity also stalled as many cash-rich shells increasingly pursue shareholder returns via take-privates or capital distributions following strategic reviews. On the BD front, M&A activity shifted back to public targets with Blueprint/Sanofi, Springworks/Merck KgAA, and Verve/Lilly each topping $1 billion in upfronts, demonstrating that buyers are still willing to pay for innovation and derisked pipelines.

Our midyear investor survey shows a measured but constructive outlook for the remainder of 2025, with focus firmly on mid-/late-stage clinical names and a watchful eye on interest rates and MFN implementation.

William Blair’s biopharma team shares additional perspectives on what lies ahead for the sector.

Complete the form below to download a copy of the report.

Delivered to Your Inbox

Stay up-to-date with the latest William Blair news and insights

More News and Insights

  • Monthly Macro: Fed Signals, Housing Headwinds, and How Companies Are Adapting

    William Blair macro analyst Richard de Chazal discusses the Fed’s softer tone, how companies are adapting to tariffs and labor shifts, and why housing and hiring trends are setting the stage for a dynamic second half of 2025.

    Listen to the podcast
  • James Hardie Industries plc: Initiation of Research Coverage

    William Blair initiated research coverage of James Hardie Industries plc (JHX $25.77), the No. 1 global manufacturer of high-performance fiber cement siding and cement backer boards used primarily in residential markets.

    Read more
  • AVI-SPL Has Agreed to Be Acquired by 26North Partners

    William Blair acted as financial advisor to AVI-SPL, a portfolio company of Marlin Equity Partners (Marlin), in connection with its pending sale to 26North Partners (26North).

    Read more

Are you sure you want to leave?

Information contained on the internet is not subject to William Blair & Company's control or review, and may not be accurate.

For disclosure information, please visit www.williamblair.com/disclosures