What's Driving Biopharma M&A Strategy in 2026

In part 1 of a 3-part interview, Kristin Ciriello Pothier, Americas Life Sciences Sector Leader, KPMG US, connects with PharmTech to discuss how the biopharma deal-making environment has fundamentally shifted in focus. Dealmakers are moving away from transaction volume toward strategic value and the industry's most sophisticated companies are driving that change.

Pothier describes an environment in which companies are scrutinizing every potential acquisition far more rigorously than in previous cycles. "We've stopped counting deals, and we've started making them count," she says. "The assets in this space are very precious."

Oncology remains the dominant therapeutic focus, energized by fresh data from the American Society of Clinical Oncology's annual meeting in Chicago, according to Pothier, adding that major pharma companies brought large delegations to evaluate novel combinations and emerging modalities. GLP-1 therapies also drew significant attention, with interest spreading well beyond obesity and diabetes into broader chronic disease management and even oncology patient care.

Pothier says manufacturing considerations are increasingly reshaping deal structures, particularly in the cell and gene therapy space. Because these therapies cannot be shipped across global regions, buyers must evaluate whether manufacturing assets are included in a deal and when they aren't, valuations can change dramatically. Acquirers must account for the cost of building or upskilling regional manufacturing capacity wherever geographic gaps exist.

On the question of tariff-driven reshoring, Pothier cautions against overreaction. She notes that leading companies are taking a measured approach: "We are still seeing that very careful discussion rather than a knee-jerk reaction and saying, 'We're just gonna build a plant in the Americas now.'"