Truist sees biotech rebound as M&A hits $136B and XBI climbs 34% in H1

Truist Securities says the biotech sector is regaining momentum after a prolonged post‑pandemic slowdown, driven by rising merger activity, returning venture capital and easing policy risks.

The S&P Biotech ETF has risen about 34% year‑to‑date, while merger and acquisition spending reached $136 billion across 57 deals, already exceeding the total deal count from 2025. Venture capital funding is also picking up again.

Analysts caution that, although the drivers are largely positive, the sector now has less margin for error as it moves toward the end of the year.