The U.S. FDA approved 16 drugs in February, up from 12 in January but still falling short of the 2024 monthly average of 19 approvals. Just two of those were new molecular entities (NMEs), continuing a slower pace compared to the year’s average of slightly more than four NMEs per month.

After finishing 2024 with a 15.25% decline, the BioWorld Drug Developers Index rebounded 6.93% in January, only to fall back to a modest 1.06% gain by the end of February. The Nasdaq Biotechnology Index and the Dow Jones Industrial Average followed a similar pattern, each rising about 5% by the end of January, before closing February at 3.13% and -2.48%, respectively.

The U.S. FDA approved 16 drugs in February, up from 12 in January but still falling short of the 2024 monthly average of 19 approvals. Just two of those were new molecular entities (NMEs), continuing a slower pace compared to the year’s average of slightly more than four NMEs per month.

Biopharma deal activity climbed in early 2025, reaching $37.38 billion in the first two months, up from $35.66 billion a year ago. February saw $8.76 billion in deals, down 69% from January’s $28.63 billion, which included 11 transactions valued at $1 billion or more. Early 2025 saw the second-highest biopharma deal total on record, trailing only the $42.19 billion logged in the first two months of 2022.

Biopharma deal activity climbed in early 2025, reaching $37.38 billion in the first two months, up from $35.66 billion a year ago. February saw $8.76 billion in deals, down 69% from January’s $28.63 billion, which included 11 transactions valued at $1 billion or more. Early 2025 saw the second-highest biopharma deal total on record, trailing only the $42.19 billion logged in the first two months of 2022.

Med-tech M&A activity reached $10.35 billion in the first two months of 2025, with $4.81 billion in deals recorded in January and increasing to $5.55 billion in February. While total M&A value remained strong, the number of M&As dropped month-over-month, falling from 40 transactions in January to 19 in February, but still tracking with the 2024 average of nearly 30 per month.

Biopharma companies raised $2.98 billion through 59 transactions in February 2025, down from $5.91 billion across 93 deals in January. The year is off to a slower start compared to 2023, with the $9.14 billion raised in the first two months, marking a 73% drop from $33.29 billion during the same period last year. However, this year's total is higher than the $7.66 billion raised in the first two months of 2023 and the $7.48 billion in 2022.

Med-tech companies raised $3.52 billion in 65 deals in February 2025, up from $2.76 billion across 56 transactions in January.

The BioWorld Neurological Diseases Index closed 2024 down 20.27%, extending its decline from -13.4% at the end of November. After falling to -12.2% in April, the index briefly rebounded, narrowing losses to under 4% by June, before experiencing a sharp downturn in the second half of the year.

Biopharma companies raised $2.98 billion through 59 transactions in February 2025, down from $5.91 billion across 93 deals in January. The year is off to a slower start compared to 2023, with the $9.14 billion raised in the first two months, marking a 73% drop from $33.29 billion during the same period last year. However, this year's total is higher than the $7.66 billion raised in the first two months of 2023 and the $7.48 billion in 2022.