John Collins on CNBC from the Global Healthcare Conference

Summary

John Collins, Morgan Stanley’s co-head of global M&A, discusses a robust healthcare dealmaking environment at Morgan Stanley’s Global Healthcare Conference. He says 2026 healthcare M&A dollar volume through eight and a half months has already matched all of 2025, with deal count higher, and he expects activity to remain strong. Drivers include pharma patent cliffs and pipeline refill needs, high biotech valuations that make boards more open to selling, and a possible rise in large pharma consolidation. He notes higher rates have not yet had an immediate impact but could affect valuations and financial-sponsor activity, leaving a more corporate-led M&A market.

• Healthcare M&A is highly active and management teams view deals as a growth tool.
• 2026 healthcare M&A dollar volume through 8.5 months has matched all of 2025.
• Pharma patent cliffs and pipeline gaps are a key driver of deal activity.
• High biotech valuations and buyer interest make biotech boards more open to selling.
• Large pharma consolidations are seen as more likely than three or four years ago, though still difficult.
• Rising rates and debt reliance are muting financial-sponsor activity; corporates dominate.
• The M&A pipeline remains strong into the remainder of the year and early next year.