How biotech executives are confronting the funding and regulatory shifts

The biotech sector is experiencing a recovery after a period of investment decline, with the number of IPOs rising sharply since the beginning of 2026 and M&A transaction values increasing by 71 percent to $22.8 billion. Despite improved sentiment toward biotech funding, companies face challenges including US tariffs, geopolitical tensions, and approaching patent cliffs. Biotech executives are confronting uncertainty around the FDA, which has been marked by departures of high-ranking officials in recent months. Some companies, such as Cognition Therapeutics, report positive experiences with the FDA, while others, like Armatus Biotech, are considering clinical trials outside the US. China represents growing competition in drug development, accounting for 22 percent of global drugs in development and offering lower per-patient costs in clinical trials.