Big pharma is snapping up biotechs at a record pace, driven by the looming patent cliff that forces drugmakers to seekfires for next‑generation assets.

The year has already seen lap 37 deals of at least $1bn, topping last year’s record, as firms like Eli Lilly and AbbVie spend billions on promising candidates. Eli Lilly’s recent $3.8bn purchase of Atai Beckley and $7bn for Kelonia Therapeutics pushed the total value of biotech deals so far this year to $216bn.

Executives point to the “patent cliff” and the generous balance‑sheet capacity of pharma as primary catalysts, while the lighter‑touch U.S. regulatory climate under the Trump administration further fuels the frenzy. Mid‑caps such as France’s Servier and Denmark’s Ipsen are also stepping in, raising competition for coveted assets.

The surge has driven the XBI biotech index to a five‑year high, and analysts warn that fear of missing out (FOMO) will keep the market active into the next decade.