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The Quarterly Rx: Q3 2025 U.S. Biopharma Recap

The summer biopharma turned pretty (again).

Biopharma bounced back in the third quarter, powered by the year’s first rate cut, a steady run of big M&A, and a wave of positive clinical data, especially from the latest IPO class. Both the XBI and NBI are well above their April lows and ended the quarter up 11.3% and 13.2% year-to-date, with the XBI closing the quarter at $100, helping set the stage for a healthier financing backdrop.

Public markets shook off the doldrums with activity rebounding sharply from Q2’s multiyear lows. The first IPO since February broke the sector’s longest drought since the Great Financial Crisis, and private financings showed early signs of recovery with 56 deals—seven of which were crossover rounds—as investors remain cautious in a still-narrow IPO window.

M&A, meanwhile, remained the brightest spot with six public all-cash deals over $1 billion helping to return $22 billion in capital and pushing 2025’s total deal value past all of 2024.

William Blair’s biopharma team shares additional perspectives on what to expect for the remainder of the year and heading into 2026.

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