Securing Radiopharma and GLP-1 Supply Chains Through 2026 M&A

Bain & Company have just released their Global M&A Report 2026, with a chapter dedicated to pharma that analyzes the current trends and patterns of the market to give a clear vision into how the dealmakers of the industry will conduct business in 2026.¹ The pharmaceutical sector is moving beyond a pursuit of new drug assets toward a more deliberate, capability-led strategy. Following a significant rebound in 2025, when deal values reached approximately $4.9 trillion, 80% of executives anticipate that activity will remain steady or increase.² Within the pharmaceutical and biotechnology industries specifically, strategic deal value saw a 79% jump as average deal sizes increased by over 80%.¹ Suzanne Kumar, executive vice president of Bain & Company’s global M&A and Divestitures practice, commented in a press release,² “The ingredients are in place for another robust year in M&A following last year’s near-record rebound.” The focus of these deals has transitioned from purely acquiring intellectual property (IP) to securing platforms and production capacity. As Kumar notes in a press release,² “Companies urgently need to reinvent themselves to get out ahead of the big forces of technology disruption, a post-globalization economy, and shifting profit pools. M&A will play a pivotal role in this reinvention in 2026.”

Phil Talamo, SVP of M&A and Strategic Innovation at MJH Life Sciences discusses the biggest pharma M&As from 2025. Article continues below the video.

Do firms own end-to-end capabilities or maintain flexibility through outsourcing or partnerships?

The emergence of vertical integration as a primary objective marks a fundamental change in how industry leaders view the value chain. In specialized fields such as radio pharma, more than 80% of 2025 deals integrated manufacturing or isotope supply,¹ signaling a preference for capacity security over simple pipeline expansion. Securing scarce inputs like isotopes and managing sterile fill-finish capabilities are being viewed as strategic hedges against bottlenecks rather than just operational necessities. This transition is driven by the increasing complexity of biologics and fragile supply chains, which make direct control over production vital for maintaining speed to market.

This trend extends into the development of glucagon-like peptide-1 (GLP-1) obesity treatments. While the initial wave of investment focused on rapid market entry for injectables, the current strategy emphasizes owning next-generation delivery platforms and multi-agonist molecules alongside the necessary manufacturing capacity.¹ For 2026, the strategic advice is to look beyond the molecule itself, as value is increasingly found in delivery innovation and the ability to scale production. Decisions regarding whether to own end-to-end capabilities or rely on partners now hinge on which parts of the chain offer a competitive advantage. Saskia Carlebur, partner at Bain & Company’s healthcare and life sciences practice, reinforces this point in an interview with PharmTech, “The key driver of any decision between ownership and retaining the flexibility of outsourcing or partnering is the strategic importance of those products for their go-forward portfolios, the ability for ownership to drive differentiated capabilities, and market positioning against competitors – as well as the level of expected competition for the capability.” Treating supply control as a core strategic move rather than mere insurance is now a defining characteristic of market leadership.

How are acquirers balancing speed and access to differentiated science?

In the rapidly evolving landscape of antibody-drug conjugates (ADCs), identifying differentiated science is prioritized over scale. Since ADCs now account for approximately 40% of all antibody transactions,¹ the ability to secure access to unique payloads and novel linker technologies is essential for long-term scientific edge. This requires navigating a mature field where the most impactful assets are those with precise control over drug release for targeted disease indications. Leading acquirers are balancing the need for speed with the necessity of structuring flexible partnerships that allow them to access this innovation without assuming the full risk of peaking valuations.

The types of deals being struck are also evolving to focus more towards licensing deals rather than full on acquisitions. Carlebur notes, “We’ve seen a significant increase in licensing deals in particular – acquisitions themselves have remained relatively flat, while licensing deals now make up over 90% of overall deals. Although total licensing deal value has risen with the increased interest, acquirers are increasing the share of milestone-based payments in their deal structures – the average value of upfront deals versus milestone-based payments has declined to approximately 5% in 2025, compared to 10% in 2022. On balance, the type and structure of the deal enable acquirers to participate but limit over-exposure to the downside risk. This needs to be paired with detailed diligence of the science and data packages, and a willingness to assume the geopolitical risk.”

Simultaneously, the rise of greater China as a pharmaceutical powerhouse is forcing a rethink of global collaboration models. While US and European firms remain selective regarding outright acquisitions in the region, licensing and co-development partnerships with China have doubled since 2020.¹ This approach allows global companies to access world-class oncology pipelines while managing the risks of geopolitical fragmentation and IP exposure. These alliances provide a pathway to benefit from scientific momentum while preserving long-term control and compliance in markets outside of greater China. Furthermore, the integration of new technologies, such as AI, is being used to manage these complexities. AI adoption in M&A more than doubled in 2025,² with one in three dealmakers systematically deploying these tools to enhance intelligence and accelerate synergies during integration. This disciplined, thesis-led approach to R&D and capital allocation is essential for navigating a landscape where the bar for successful dealmaking continues to rise.

References:

1. Bain & Company. M&A in Pharmaceuticals: Bigger, Bolder, and Far More Strategic. Report. Jan 27, 2026.
2. Bain & Company. Global M&A poised to sustain momentum in 2026 after great rebound, finds Bain & Company. Press Release. Jan 27, 2026.