After a record wave of merger-and-acquisition deals in the U.S. biotechnology sector, July–August will bring news on clinical trial results. At Freedom Broker, they believe this is what will determine the sector’s value in the coming months.
M&A deals in biotech
Recent M&A activity confirms strong interest from major pharmaceutical companies in promising developments. In June alone, deal volume exceeded $36 bn.
Among the largest was the acquisition of Apogee (APOG) Therapeutics, a U.S. biotech company developing treatments for immune and inflammatory diseases. The asset was acquired by AbbVie (ABBV) for $10.9 bn at a 49% premium. AbbVie is a U.S. research-based biopharmaceutical company that develops and manufactures innovative medicines in areas such as immunology, oncology, and virology. In addition, Apogee raised $1.3 bn in financing from investment firm Blackstone (BX) after successful clinical trial results
And GSK—one of the world’s largest international research-based pharmaceutical companies—acquired Nuvalent for $10.6 bn at a 40% premium. Nuvalent specializes in developing targeted therapies for the treatment of severe cancers.
Investors are watching Replimune
Investors are closely monitoring clinical trials and approvals for new drugs. Positive decisions by the U.S. Food and Drug Administration (FDA) will allow the biotech sector to maintain an upward trend. At the same time, the industry’s dependence on the broader market will decline as successful developments emerge and their commercial potential is confirmed.
One of the biggest events in biotech is related to Replimune (REPL). In late July, it is set to have an FDA advisory committee meeting, and on August 2 the regulator is expected to rule on a melanoma treatment. If approved, the company’s shares, according to Freedom’s estimates, could rise by 50–80%, while another rejection could sharply reduce the stock’s value. It is precisely such events that will determine the dynamics of the entire biotech sector in the coming months.
State of the biotechnology sector
Freedom Broker expects the U.S. biotechnology sector to continue to grow. The industry’s performance in the coming months will be driven by M&A deals, clinical trial readouts, and regulators’ decisions on new drugs.
Among the most promising investment ideas, Freedom analysts highlighted companies Viridian Therapeutics (VRDN) and Evommune (EVMN), whose potential is also tied to upcoming clinical catalysts. Viridian Therapeutics is a U.S. biotech company developing medicines for autoimmune diseases. Evommune is also a U.S. company developing drugs against chronic inflammatory and autoimmune diseases.
In particular, in 2025 Evommune raised $115 mn in a third round of venture financing to accelerate the development of a clinical portfolio of drugs for chronic inflammatory diseases, which should support the advancement of its key programs to later-stage trials.
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