Biopharma industry trends shaping 2026

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The biopharma industry enters 2026 at a turning point. Macroeconomic volatility, regulatory change, and technological innovation are converging in ways that demand new approaches to R&D, manufacturing, and portfolio management.

According to Deloitte's 2026 Life Sciences Outlook Survey, 78% of biopharma C-suite executives expect AI to play a central role in driving major change. At the same time, companies must contend with a looming patent cliff that could affect more than $300 billion in sales between 2026 and 2030.

Here we examine the six most significant biopharma industry trends for 2026, drawing on insights from industry analysts at J.P. Morgan, BCG, GlobalData, and EY.

Key takeaways from 2026 biopharma trends

1. Deal volume rebounds with strategic M&A: Biopharma M&A reached $138 billion across 129 deals in 2025, with deal values expected to remain strong in 2026 as companies backfill pipelines facing patent expirations.

2. Gene therapies mature toward commercial viability: Cell and gene therapy is moving from experimental science to repeatable medicine, with FDA's new N-of-1 pathway enabling personalized CRISPR treatments.

3. AI reshapes drug development timelines: AI-based clinical trials reached $1.49 billion in 2026, with platforms now preparing IND submissions 50% faster.

4. Emerging markets become clinical trial hubs: China overtook the U.S. in oncology trials in 2024 (39% vs. 32%), and biopharma is expanding trials globally to address recruitment challenges.

5. Precision medicine anchors therapeutic development: Precision medicine generated $151.57 billion globally in 2024 and is projected to reach $469 billion by 2034, driven by advances in genomics and AI-powered clinical tools.

Deal volume and deal values surge as M&A heats up

The biopharma M&A market delivered strong results in 2025, with 129 deals totaling approximately $138 billion. Goldman Sachs predicts a record-breaking year for pharma and biotech M&A in 2026, driven by what EY calls $1.3 trillion in "firepower" available to the top 25 biopharmas for acquisitions.

The primary driver is the patent cliff. The top 20 drugs heading for exclusivity loss between 2026 and 2029 accounted for $176.4 billion in 2024 sales. This creates urgency for companies to acquire late-stage assets and marketed products, particularly in oncology, CNS, and metabolic diseases.

Companies are increasingly looking to China for innovation. Deals involving Chinese pharma and biotech firms reached $92.2 billion in potential value through November 2025, nearly double the $51.9 billion recorded in 2024. About 35% of deals announced in 2025 originated in China, where clinical trials move faster and at lower cost.

AI and data reshape drug development and biopharma manufacturing

Artificial Intelligence has moved from experimental tooling to enterprise-level scientific infrastructure. Eli Lilly partnered with NVIDIA to build an AI supercomputer designed to run trillions of molecular simulations annually, unifying chemistry, biology, toxicology, and imaging workflows.

The AI-based clinical trials market expanded to $1.49 billion in 2026 and is projected to reach $2.13 billion by 2032. Parexel used AI systems to prepare IND submissions up to 50% faster, while Takeda co-developed HAQ Manager to draft and coordinate responses to FDA and EMA review questions.

IoT sensors are transforming biopharma manufacturing with real-time monitoring of equipment performance, environmental conditions, and supply chain logistics. Companies including Novartis, Eli Lilly, Roche, and Pfizer deploy these technologies for predictive maintenance, quality control, and throughput optimization. Merck reported a 20% improvement in production uptime using predictive maintenance strategies.

Biopharma is expanding trials into emerging markets

Biopharma companies are increasingly turning to emerging markets for clinical trials, driven by regulatory reforms and faster trial processes. China has implemented significant reforms to simplify trial applications and accelerate approvals, making it a highly attractive location for global clinical research.

In 2024, China overtook the U.S. in oncology trials, with 39% based in China compared to 32% in the U.S. This reflects the country's ability to get to first-in-human trials faster and cheaper. Over 90% of survey respondents anticipate using decentralized clinical trials within the next two years.

The globalization of trials addresses multiple challenges: 45% of sponsors report that clinical development timelines have grown longer compared to two years ago. Expanding research sites across multiple countries helps tackle patient recruitment issues while extending access to therapies in underserved regions.

Gene therapies and precision medicine advance toward mainstream adoption

Precision medicine has solidified its position as the cornerstone of therapeutic development. The market generated $151.57 billion globally in 2024 and is projected to reach $469 billion by 2034, driven by advances in genomics, AI-powered clinical tools, and multi-omic profiling.

Cell and gene therapy reached a turning point in 2025 with the successful treatment of Kyle Patrick Muldoon, Jr., the first patient to receive a personalized CRISPR therapy. The FDA approved the treatment after a one-week review, signaling a shift toward individualized "N-of-1" therapies for ultra-rare diseases.

Major advances in CAR-T therapies are expanding beyond oncology into autoimmune diseases including lupus, myasthenia gravis, and rheumatoid arthritis. Companies like Vertex are exploring gentler conditioning regimens that could eliminate the need for myeloablative conditioning and expand market access for gene editing therapies.

Digital health and technological innovation drive competitive intelligence

Technology is reshaping how biopharma companies gather competitive intelligence and make strategic decisions. The convergence of genomics, real-world evidence, and digital health tools provides unprecedented insight into how diseases begin, progress, and respond to treatment.

PwC predicts that winning pharma companies will embed AI, automation, and digital twins into every layer of the enterprise by 2026. Digital twin technology allows manufacturers like Novartis to simulate production processes and test changes virtually before implementation, reducing process optimization time.

Wearable devices and smart sensors are creating longitudinal health dashboards that integrate genetic insights with lifestyle data. This enables more responsive trial designs and personalized patient engagement, while predictive models sharpen probability assessments for technical and regulatory success.

The industry faces supply chain and regulatory shifts

Supply chain resilience remains a strategic priority. An industry survey found 85% of life sciences firms increased investment in supply chain and digital manufacturing capabilities, representing a $1.3 trillion effort. Single-use bioreactors, continuous processing, and IoT sensors are helping increase yield and flexibility.

The regulatory picture is shifting. FDA Commissioner Martin Makary launched a Commissioner's National Priority Voucher pilot program, offering drug developers application reviews within 1-2 months instead of the standard 10-12 months in exchange for commitments on affordability, U.S. manufacturing, or unmet public health needs.

Geopolitical tensions and policy uncertainty continue to influence strategy. The Trump administration's most favored nation pricing policies and tariff discussions have created both headwinds and opportunities. Companies that secured domestic manufacturing commitments gained advantages, while reshoring efforts are bringing biotech investment to new U.S. locations including Indiana, Ohio, and Texas.

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Sources

• J.P. Morgan Biopharma Deal Reports Q4 2025: jpmorgan.com

• Deloitte 2026 Life Sciences Outlook Survey: deloitte.com

• GEN - Seven Biopharma Trends to Watch in 2026: genengnews.com

• PwC Pharma Industry Trends 2026: pwc.com

• EY-Parthenon Firepower Report: pharmavoice.com

• GlobalData State of the Biopharmaceutical Industry 2026: globaldata.com

• Evaluate 2026 Biopharma Outlook: evaluate.com