Q2:26 Scorecard - Strong IPO/Secondary Activity YTD, Healthy M&A Momentum

Research evidence excerpt

Q2:26 Scorecard - Strong IPO/Secondary Activity YTD, Healthy M&A Momentum

USA | Biotechnology EquityJulyResearch6, 2026

Q2:26 Scorecard - Strong IPO/Secondary Activity

YTD, Healthy M&A Momentum

In H1:26, IPO, secondary and M&A activity all trended higher Y/Y. With the

XBI now trading at record highs, the Street naturally wonders how long the

biotech momentum may last. Consolidation periods are always healthy, but we

do wonder whether investor appetite for (+) clinical data and M&A deal flow

will continue in H2:26, keeping the XBI at these price levels - all while driving

financing activity higher. For now, the macro risks seem neutral/manageable.

** Contact us for detailed spreadsheets on IPOs, M&A,

secondaries, PIPEs, EV/cash balances, FDA PDUFA/CRLs, etc **

Big picture: Investor sentiment was neutral-to-positive in Q2:26, albeit the trading environment was

particularly challenging for market neutrals. Despite ongoing debate over where the XBI is heading in

H2:26, our sense is that investors still have a strong appetite for catalysts/events and M&A takeout

names. In our view, as long as (+) catalysts and M&A activity play out favorable, the macro backdrop

should remain fairly healthy. Note: (1) M&A volume is on pace to break record highs in 2026, (2)

Compared to prior 4 years (post-COVID), the IPO market is showing signs of a meaningful recovery

in 2026 (perhaps going back to normalcy), (3) Secondary offerings are also on pace to reach record

levels in 2026. Net-net, 2026 capital market conditions seem to be improving.

Said another way, we do not foresee a sharp reversal in the XBI, although a consolidation period

is always welcome. In addition to our aforementioned points: (1) Drug pricing fears have subsided