Lexology March 18, 2025
With companies constantly developing new therapies and technologies, the biotech industry is a hotbed of innovation. This dynamic environment often leads to mergers and acquisitions (M&A) as a vehicle for larger companies to acquire promising technologies and product candidates to bolster their development pipeline. However, changes in funding for the U.S. Food and Drug Administration (FDA) have the potential to affect new product development and significantly impact biotech M&A activity.
The Trump administration has signaled a reduction in government funding across many departments, including FDA and other government agencies, like the National Institutes of Health, that fund research and development activities. As discussed below, reductions and fluctuations in FDA funding can directly impact biotech M&A in several ways, making it...
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