Why Pharma Dealmaking Slowed in Q1 2026 and What Is Coming Next

Access Part 1 of this interview about how oncology, GLP-1s, and manufacturing complexity are reshaping M&A valuations in 2026.

Access Part 2 of this interview about why supply chain resilience and platform technology diligence are reshaping biopharma M&A valuations globally.

In part 3 of this 3-part interview, Kristin Ciriello Pothier, Americas Life Sciences Sector Leader, KPMG US, discusses how the first half of 2026 has been a period of measured restraint in life sciences dealmaking and how that is not necessarily a bad sign. The current contraction in deal volume and value reflects strategic maturity rather than market weakness.

Pothier says "It doesn't mean that the deals are not as valuable, it means that companies are paying what they should," adding that companies are applying rigorous diligence and avoiding inflated valuations. "We're seeing a very disciplined approach to life sciences in the first half of this year," she continues.

That discipline, she argues, will give way to a more active second half of 2026 and into 2027, driven by three converging forces. The first is a surge in AI-related partnerships and alliances, structures that tend to be smaller than traditional M&A but strategically significant, as life sciences companies look externally to access best-in-class AI capabilities rather than building them in-house. The second is acquisitions of CMOs and manufacturing sites, a trend driven by increasing complexity in platform technologies, particularly in oncology. The third is therapeutic area consolidation, with oncology assets leading the way, followed closely by cardiovascular and metabolic disease, an area that extends well beyond GLP-1s themselves to encompass diagnostics, consumer health services, and the broader ecosystem supporting patients on these therapies.