Biotech’s 2026 flywheel: Takeouts, IPOs — and the risk of a stall

If launches are the fundamental test of the 2026 bull case, the market’s day-to-day momentum will be set by something more mechanical: liquidity. Investors and bankers told BioCentury that steady M&A, and a reopening IPO market built on strong follow-on demand, could keep capital rotating through the sector and extend the rally.

Last year’s strong M&A pace is expected to continue, and investors say part of the upside in the next wave of commercial names could come from a takeout premium as pharmas look to buy late-stage assets to address looming patent expiries...