Global Life Sciences 2Q26 Market Trends; US biotech funding rising, EU deal volume at 10yr low as value climbs; 2Q26 M&A activity exceeds FY25; Weak Flu activity persists

Research evidence excerpt

Global Life Sciences 2Q26 Market Trends; US biotech funding rising, EU deal volume at 10yr low as value climbs; 2Q26 M&A activity exceeds FY25; Weak Flu activity persists

Equity Research

20 July 2026

Global Life Sciences

2Q26 Market Trends; US biotech

funding rising, EU deal volume at

European Pharmaceuticals, Biotechnology10yr low as value climbs; 2Q26 & Life Sciences

NEUTRALM&A activity exceeds FY25; Weak U.S. Life Science & Diagnostic Tools

POSITIVEFlu activity persists European Pharmaceuticals,

Updating for key market trends pre-2Q26, topics in focus are Biotechnology & Life Sciences

Charles Pitman-King, CFA

US/EU/China funding, US/German regulations, weak Flu rates +44 (0)20 3134 6023

and strong M&A activity. Expecting positive bioprocessing charles.pitman-king@barclays.com Barclays, UK

cons./equip. demand commentary, we prefer SRT/DIM (23 James Gordon

Jul), but are cautious on BANB (30 Jul), sitting -LSD% to BBG +44 (0)20 7116 2784

cons. james.gordon@barclays.comBarclays, UK

Yihan Li, PhD

Ahead of 2Q26 results for Barclays-covered life science companies, we review the latest industry +44 (0)20 3555 3563

data from a variety of sources and provide an update on the key themes in focus and on FY26 yihan.li@barclays.com

recovery outlooks. This includes US and European Biotech funding, China's funding Barclays, UK

environment, customer inventory levels, customer R&D spend, and sector M&A updates. Sidhartha Modi

+91 (0)22 6175 1326

With this report, we update our previous note Global Life Sciences: 1Q26 Market Trends; US VC sidhartha.modi@barclays.com

deal values spike as EU decline continues; Weak M&A activity on macro; Weak US Flu data Barclays, UK

(21/04/26).

U.S. Life Science & Diagnostic Tools

Key Calls into 2Q26 results: Luke Sergott

+1 212 526 9258