Revenue and Regulation - Life Sciences Update – February 2026

In a nutshell

• Strong dealmaking activity at the top of the market;
• Important regulatory changes are upcoming in the UK and EU;
• The UK’s relationship with the USA continues to evolve, especially regarding drug pricing;
• Obesity treatments, oncology and immunology are potential key areas of focus in 2026.

For in‑house counsel, founders and academics focused on the UK market, these themes highlight where strategy, compliance and partnering priorities may require renewed focus in 2026.

Big Pharma deal time: late‑2025 momentum into early‑2026

It is a boom season in big pharma M&A, with several blockbuster deals completing or being agreed recently. Key transactions include:

Pfizer–Metsera (Q4 2025): Following a high-profile bidding war with Novo Nordisk, Pfizer completed its up to $10bn acquisition of Metsera, adding obesity assets at different stages of development to its portfolio and underscoring the demand for obesity and metabolic based therapies. 

Merck (MSD)–Cidara (Jan 2026): Merck completed the acquisition of Cidara Therapeutics for $9.2bn, which follows on the heels of its $10bn acquisition of Verona Pharma, further strengthening MSD’s immunology revenue stream.

GSK–RAPT Therapeutics (Jan 2026): GSK has recently agreed to acquire RAPT Therapeutics for $2.2bn, expanding its respiratory, immunology and inflammation pipeline. 

What this means: 

• Obesity treatments remain in strong demand in 2026, following on from a hot 2025;
• Key players are using M&A to navigate significant patent exposure and market access pressures; and
• Developers are also likely to litigate expiring patents hard against generic manufacturers to try to preserve value for as long as possible.

Regulatory changes inbound

Substantial regulatory changes are coming into effect, or expected, during 2026 in the UK and Europe.

UK – MHRA clinical trials reforms:

The UK has confirmed that the most significant update to its clinical trials framework in two decades will go-live in April 2026:

• Fast Track: a new fast‑track notification route for lower‑risk studies is being introduced, which expects to capture around 20% of trials;
• Transparency: legal requirements around the reporting and publishing of clinical trial results are being bulked up.

EU – Biotech Act and Pharma Package (expected in 2026)

• Simplifying regulation (Biotech Act): authorization timelines are being shortened and there will be simplified requirements for “low intervention” trials;
• Strategic focus (Biotech Act): projects with strategic value are to be identified for receiving enhanced support and accelerated approvals;
• Changes to exclusivity (Pharma Package): the revised framework includes 8 years of regulatory data protection + 1 year of market protection (a reduction from the current 8+2 model), with up to 11 years’ protection available for orphan drugs.

What this means:

The UK and Europe are responding to growing competitive pressures from both the USA and China.

A key theme of the initiatives is the intention to improve speed and predictability in the approvals process. China, in particular, has gained ground in recent years by being faster in conducting its clinical trials.

Founders, general counsels and investors will need to be alive to these changes and whether they can be leveraged for early-stage assets.

Britain, the USA and drug prices: a new transatlantic dynamic

In December 2025, the UK and US announced a pharmaceuticals agreement. The core elements and results include:

• 0% tariffs for UK pharmaceutical exports to the US (for three years), plus preferential terms for UK medtech; and
• a UK commitment to increase net spending on innovative medicines by approximately 25%, achieved by raising NICE’s baseline cost‑effectiveness threshold (from £20–30k to £25–35k per quality adjusted life year) and lower VPAG rebates for newer medicines in 2026.

This initially was a welcome balm to the concerns which had been swirling around the industry in 2025. However, continued political uncertainty since then risks undermining that relief.

What this means: 

From a UK perspective, remaining competitive and being open to business is important at a time when the USA continues to debate medicine prices. However, it’s also important to note that public money that is diverted towards medicine supply is likely to mean that other areas of the health system will face budget cuts.

4) Obesity and oncology: potential 2026 launches

Obesity: 2025 was a brutally competitive year in obesity therapeutics. The theme is expected to continue in 2026 with new products already hitting the market. Novo Nordisk had a tough 2025 but has some cause for optimism from its CagriSema injection which is seen as a potential successor to Wegovy. However, Eli Lilly also has a new product in the works for 2026, Orforglipron, which comes in tablet form.

Oncology: Notable product launches are also anticipated in cancer treatment in 2026. Anito-cel, a collaboration between Gilead and Arcellx, has shown promising results in clinical trials for treating multiple myeloma (a form of blood cancer). AstraZeneca is also progressing a trials process for camizestrant in treating breast cancer with further data scheduled to be available in August 2026. 

What this means:

Competition in obesity treatments is likely to persist, but other major launches are expected in oncology and other sub-sectors.

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