Truist Securities said biotech’s near-term glide path looks better after H1 progress smoothing the path through year-end, citing improving access to capital and rising M&A activity. The firm pointed to a rebound in dealmaking tied to ongoing patent cliff dynamics and a more stable regulatory environment. According to Truist’s survey, the sector saw a strong return of both licensing/M&A and venture financing, while IPO activity increased relative to 2025. It also highlighted that fewer companies are trading below cash than earlier in the cycle. The message for operators is that partnering and financing conditions are improving, but with less tolerance for execution errors as capital returns alongside stronger scrutiny of pipeline differentiation.