M&A activity in the biotech sector has accelerated sharply in 2026, as large drugmakers increasingly turn to external innovation to strengthen pipelines, expand into new therapeutic areas and gain access to promising technologies and late-stage assets. For some companies, looming patent expirations are also adding urgency to the search for new growth drivers.
Per IQVIA, deal value reached roughly $130 billion in the first half of 2026 alone, nearly matching the $133 billion recorded for all of 2025. Eli Lilly LLY has been particularly aggressive, announcing about 10 acquisitions so far this year as it expands beyond its core diabetes and obesity franchises into areas such as immunology, oncology, neuroscience and vaccines. Gilead, GSK and Novartis have also remained active on the M&A front.
The current M&A cycle has largely favored targeted mid-sized and bolt-on acquisitions rather than transformative mega-mergers, allowing Big Pharma to add promising products, platforms or capabilities that complement existing portfolios. At the same time, drugmakers are navigating pricing pressure from the Inflation Reduction Act (IRA) and the Trump administration’s push for Most-Favored-Nation (MFN) pricing. These dynamics could further increase the strategic value of biotech companies with differentiated commercial or late-stage assets capable of supporting future growth.
In this article, we highlight four biotech stocks — Abivax ABVX, Iovance Biotherapeutics IOVA, Viking Therapeutics VKTX and BioCryst Pharmaceuticals BCRX. These companies could attract acquisition interest given their differentiated commercial or late-stage assets and exposure to strategically important therapeutic areas. While Abivax and Iovance each carry a Zacks Rank #2 (Buy), Viking and BioCryst currently have a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ABVX: Late-Stage Immunology Asset Puts It on M&A Radar
Abivax could attract larger drugmakers looking to strengthen their immunology and inflammation portfolios. Its lead candidate is obefazimod, an oral first-in-class miR-124 enhancer being developed for moderately to severely active ulcerative colitis (UC). The drug delivered positive results in both phase III induction studies, ABTECT-1 and ABTECT-2, followed by encouraging results from the phase III ABTECT maintenance study. Based on the overall phase III data, Abivax plans to submit a regulatory filing to the FDA for obefazimod by the end of 2026.
The opportunity could extend beyond UC. Abivax is also evaluating obefazimod in Crohn's disease through the phase IIb ENHANCE-CD study, with induction data expected in mid-2027. This could give a potential acquirer access to a differentiated oral therapy across two major inflammatory bowel disease (IBD) markets. Abivax is also evaluating obefazimod in combination with other mechanisms and developing follow-on miR-124 enhancers, potentially broadening the platform’s longer-term value beyond the lead program.
Abivax has already attracted considerable takeover speculation, with some third-party reports linking Eli Lilly to potential acquisition interest. However, management dismissed the takeover reports, and no acquisition discussions have been confirmed. With obefazimod approaching a potential regulatory filing and offering expansion opportunities beyond UC, Abivax remains a notable name on biotech M&A watchlists.
Abivax SA Sponsored ADR Price
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IOVA: Amtagvi & TIL Pipeline Strengthen M&A Appeal
Iovance could attract larger oncology players given its established position in tumor-infiltrating lymphocyte (TIL) therapy for solid tumors. The company’s lead marketed product is Amtagvi, the first FDA-approved one-time T-cell therapy treatment for people with previously treated melanoma that has spread or cannot be removed by surgery. Commercial uptake has been encouraging since launch, with Amtagvi generating about $220 million in sales in 2025, its first full year on the market, and another $151 million in the first half of 2026. Per management, the recent increase reflects organic demand rather than shipment timing. It expects demand to continue rising through the remainder of 2026.
The appeal extends beyond Amtagvi’s current melanoma indication. Iovance is evaluating the therapy across several additional solid tumors, including non-small cell lung cancer (NSCLC), where management estimates the targeted U.S. opportunity at about seven times the size of advanced melanoma. The company is also advancing next-generation TIL therapies, giving a potential buyer access to a broader cell-therapy platform.
An acquirer would additionally gain Iovance’s specialized in-house manufacturing capabilities, an important asset in the operationally complex cell-therapy space. With an approved and growing product, opportunities for label expansion and a broader TIL pipeline, Iovance could represent an attractive strategic fit for a larger oncology-focused drugmaker.
Iovance Biotherapeutics, Inc. Price
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VKTX: A Scarce Late-Stage Obesity Asset
Viking Therapeutics could attract larger drugmakers looking to strengthen their presence in the fast-growing obesity market. The company is one of the relatively few independent biotechs with a late-stage obesity candidate. Its lead candidate, VK2735, is a dual GLP-1/GIP receptor agonist being developed in both injectable and oral formulations. While the injectable version is already being evaluated in two phase III studies, late-stage development on oral VK2735 is expected to begin in fourth-quarter 2026. The nearest catalyst is data from a maintenance-dosing study evaluating whether weight loss achieved with weekly injectable VK2735 can be sustained using less-frequent injectable or oral dosing. Subcutaneous maintenance data are expected in the third quarter of 2026.
Viking recently broadened its obesity pipeline with VK3019, a dual amylin and calcitonin receptor agonist that entered phase I development this year. Beyond obesity, the company also has VK2809, which has completed a phase IIb study in NASH and shown encouraging efficacy. Viking is currently seeking partnership opportunities to further develop this program, which could add another element of strategic value for a potential buyer.
With no approved products or established commercial infrastructure, Viking could benefit from the resources of a larger drugmaker. In turn, an acquirer would gain a late-stage obesity franchise along with additional metabolic assets.
Viking Therapeutics, Inc. Price
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BCRX: Rare-Disease Franchise Offers Strategic Value
BioCryst Pharmaceuticals could attract larger drugmakers looking to strengthen their presence in rare diseases, particularly hereditary angioedema (HAE). The company already has an established commercial franchise in Orladeyo, a once-daily oral therapy approved for preventing HAE attacks. The drug generated $306.5 million in revenues during the first half of 2026, up 5% year over year. BioCryst expects full-year net sales of $625-$645 million, providing a potential acquirer with growing revenue stream.
BioCryst further strengthened its HAE portfolio through the acquisition of Astria Therapeutics earlier this year, which added late-stage candidate navenibart. The long-acting injectable therapy is being developed for dosing once every three or six months, potentially complementing Orladeyo by giving BioCryst both oral and injectable prophylactic options. Enrollment in the phase III ALPHA-ORBIT study has been completed, with the program expected to support a regulatory filing by the end of 2027.
The recently completed $10-billion acquisition of rare disease drugmaker Crinetics by Vertex has renewed takeover speculation around BioCryst. With an established commercial rare-disease product, a differentiated late-stage HAE candidate and existing commercialization infrastructure, BioCryst could offer a larger pharmaceutical company a relatively de-risked way to build or expand a rare-disease franchise.
BioCryst Pharmaceuticals, Inc. Price
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BioCryst Pharmaceuticals, Inc. (BCRX): Free Stock Analysis Report
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