The biotech sector struggled in the first half of 2025 but rebounded in the second half, driven by M&A activity and the looming patent cliff. A 20% reduction in listed companies has refocused attention on strong datasets, with Q3 venture financing reaching $3.1bn, up from 2024.

Investor focus has shifted from preclinical assets to clinical-stage data, increasing enterprise value. China’s innovation is significant, with IP from China impacting the sector. Collaboration with Chinese companies, like Summit Therapeutics and Akeso, has been successful. Chinese companies could originate a third of FDA approvals in 15 years.

Policies like the BIOSECURE Act could impact international deals, requiring nuanced approaches to leverage data and innovation from China. The focus is now on meeting timelines and flexible contracting models in the biotech-CRO landscape. Macrotrends indicate an inflection point in the global biotech industry.

Read more at Yahoo Finance: Investor focus shifts to late-stage development in biotech, expert says