During Episode 30 of Biotalk, Geoff Meyerson, CEO of Locust Walk, unpacks our 2025 Q3 Report: Global Trends in Biopharma Transactions Report, covering capital markets, strategic deals, and regional trends. 

Market Overview: Q3 signaled a cautious biotech recovery. Valuations rebounded, the XBI topped 100 for the first time since 2022, and the number of companies trading below cash hit multi-year lows. Investor sentiment shifted from survival to selective growth amid improving macro stability and risk tolerance.

Strategic Transactions: Licensing held steady with renewed interest in early-stage programs and back-loaded structures (upfronts <5%). Non-oncology deal value hit a four-year high, while M&A surged 64%, driven by late-stage assets—highlighted by Pfizer’s $4.9B Metsera and Merck’s $10B Verona Pharma acquisitions.

Capital Markets: Financing activity rose ~40% from Q2 as the IPO window reopened and follow-ons jumped 81%. The XBI and NBI rallied, signaling renewed investor confidence. Europe saw more deals but smaller rounds, underscoring ongoing selectivity.

Outlook: A selective recovery is underway. Strategic dealmaking and M&A remain strong, capital markets are thawing, and quality assets continue to attract capital. Biotechs should stay agile and ready for partnerships or non-dilutive funding.