The complexity of biopharma dealmaking has increased, with executives and panelists at the BIO International Convention in San Diego on June 25 highlighting a shift from the traditional dual track merger and acquisition or initial public offering process to multi-track strategies involving three or even four simultaneous options.
Anamaria Sudarov, managing director for healthcare investment banking at Wells Fargo, said, “This $65 billion year-to-date M&A swamp has meant a lot of investors with a significant amount of capital to redeploy, and they are eager to do that.” Sudarov added that while dual track was not an option in 2025, it is now considered the minimum. She noted an acceleration in processes this year: “In 2025, dual track was not an option. Now, it’s bare minimum.”
Deepa Talpade, head of business development and licensing for oncology at Bayer, said during a panel discussion that many biotechs are simultaneously negotiating deals while raising their next funding rounds. Casarine Chong, general counsel for R&D and business development at CSL, observed changes in adviser roles: “There are bankers that I’ve historically only encountered in the M&A context that are now representing biotechs... It’s ‘Let’s get a deal done.’” Chong also emphasized the need for contracts to protect future exits: “It’s important for Big Pharma to remember that that license collaboration needs to be structured in a way to facilitate and not gut the opportunity for M&A.”
Rachel Lane of Xaira Therapeutics stated this approach is used by both early- and late-stage companies. Maha Radhakrishnan from Sofinnova Investments said which tracks to pursue depends on company resources: “It comes back to resources. It comes back to are people able to go on this dual or triple from a standpoint of being able to manage multiple priorities...” Sam Zucker from Goodwin’s life sciences group advised protecting high-value assets if exit is the goal: “Don’t partner out your crown jewel.” Doreen Levine from Ernst & Young noted cash runway can force decisions: “If you really don’t have cash runway... then you may not have a choice.”
Radhakrishnan said Sofinnova advises companies on building value through early transactions while preparing for eventual exits. Zucker warned about regulatory issues around disclosures when pursuing multiple tracks: “You have to manage that carefully with counsel...” Chad Diehl from Astellas Pharma mentioned some companies prefer collaborations or joint ventures instead of exits.
The convention reflected how policy changes and investor activity continue shaping strategies across all stages of biotech development.
