The biotech sector closed 2025 with a strong rally in exchange‑traded funds such as XBI, driven by renewed M&A activity, easing rate expectations and improving capital markets access. Industry analysts and BioCentury commentary labeled 2025 an inflection point for biotech translation and financing, with implications for deal flow and R&D investment in 2026. Market strength has already shifted boardroom priorities toward execution, but participants caution that regulatory uncertainty and funding variability will continue to shape company strategies. Expect investor focus to center on late‑stage readouts, platform de‑risking, and M&A targets early in the year.