More than four decades on from the approval of the first biologic drug, the industry has reached a tipping point, and biotech drugs now outnumber small molecules in the global R&D pipeline.

Biopharma deal value totaled $18.05 billion in March 2026, a pullback from $30.01 billion recorded in February and $31.16 billion in January, but broadly in line with prior years. The March total exceeds March 2024 ($8.5 billion) and is comparable to March 2023 ($19.68 billion) and 2022 ($15.35 billion). For the first quarter (Q1) 2026, deal value increased 17% year over year to $79.22 billion, up from $67.6 billion in Q1 2025.

After nearly a year of threats and promises of a global biopharma tariff of 25% to 500%, U.S. President Donald Trump finally delivered it. In the name of national security, he imposed a 100% sector tariff on prescription drugs and their associated ingredients beginning in about four months for large manufacturers and six months for smaller companies.

Total biopharma financings reached $25.14 billion in the first quarter (Q1) of 2026, nearly doubling the $13.12 billion in the Q1 2025. The early 2026 total comes in above the $13.19 billion recorded in 2023 and $13.66 billion in 2022, though it remains below the $38.27 billion during the same period in 2021 and $47.25 billion in 2024.

Biopharma deal value reached $61.17 billion in the first two months of 2026, roughly a 60% increase from the $38.11 billion logged in the same period of 2025 and marking the strongest early year total in BioWorld’s records. The surge was driven by unusually strong activity in both months, with $31.16 billion in January and $30.01 billion in February.

Twelve years on from the World Health Organization formally raising the alarm, antimicrobial resistance continues to grow, and despite numerous public and private incentives and initiatives, the pipeline of antibiotics in development is thinner than ever.

The BioWorld Biopharmaceutical Index finished 2025 up 24.07%, building slightly on its 23% gain recorded at the end of November. While the increase trailed the Nasdaq Biotechnology Index’s 32.4% rise for the year, it outperformed the broader Dow Jones Industrial Average, which advanced 12.97%.

U.S. FDA approvals began 2026 at a slower pace than usual, with eight approvals recorded in January.

China’s State Council updated its Drug Administration Law, and the changes mark a substantive evolution in the country’s drug regulatory framework.

Total biopharma financings rose to $10.79 billion in January 2026, up from $9.08 billion in December. The monthly total nearly matched the January 2024 record of $10.9 billion, far exceeding the $6.82 billion average monthly haul in 2025.