XBI — Pharma M&A hits record pace as patent cliff forces drugmakers into buying spree

Major pharmaceutical companies are acquiring biotech firms at an unprecedented rate, with 37 deals valued at over $1 billion completed so far this year, surpassing last year's annual record. The M&A frenzy, which has pushed total biotech deal value to $216 billion year-to-date, is driven by the need to replace revenue from blockbuster drugs like Merck's Keytruda, which faces patent expiration in 2028. Recent large transactions include Eli Lilly's $3.8 billion deal for AtaiBeckley and GSK's $10.6 billion purchase of Nuvalent.