Pharmaceutical Mergers Stalled by Shifting U.S. Policies

Major pharmaceutical and biotech mergers are delayed due to unpredictable U.S. economic policies. Despite initial optimism post-election, uncertainty concerning tariffs and government appointments is leading to risk-averse behavior among investors, affecting healthcare deals. Executives are wary of revenue declines due to these political and economic shifts.

Major pharmaceutical and biotech mergers have come to a standstill as U.S. economic policies, described as unpredictable by industry insiders, fuel global market unrest. Executives are wrestling with the implications of such policies, which are blamed for the delay of these substantial mergers and acquisitions.

Following the initial excitement surrounding President Trump's electoral victory, hope waned amidst rising political uncertainty. Investment bankers report postponements of proposed deals as companies navigate the unstable economic landscape, grappling with potential impacts on revenue and new drug pipelines.

Bankers and analysts express concerns beyond tariffs and stock volatility, citing potential cuts to federal research funding and drug pricing policies as significant risks. Despite uncertainty, smaller biotech acquisitions may sustain merger activity as larger firms seek to bolster their pipelines in a challenging market environment.

(With inputs from agencies.)