Pharmaceutical giants are hitting the brakes on major mergers and acquisitions. Bankers point to President Donald Trump’s unpredictable economic policies—think tariff threats and drug price interventions—as the culprits behind this hesitation. These political uncertainties have executives treading carefully. As a result, big-ticket deals in the Pharma and Biotech sectors have been delayed. The looming possibility of a recession only adds to the already cautious atmosphere.
For investors watching the fallout, it’s worth keeping an eye on how Pharma and Biotech stocks respond in the coming weeks. You can track performance, compare names side by side, and spot potential opportunities using TipRanks’ Stocks Comparison tool.
Wall Street Faces Job Cuts Amid Deal Drought
Over on Wall Street, the mood isn’t any brighter. U.S. investment banks are bracing for potential layoffs as market volatility hampers dealmaking. Reuters reports that firms like JPMorgan (JPM), Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS) are already trimming underperformers.
With global investment banking fees down 6.3% in early 2025 and U.S. equity offerings dwindling, the pressure mounts. Analysts warn that if deal activity doesn’t pick up soon, more pink slips and slimmer bonuses could be on the horizon.
In the end, dealmakers are stuck on the sidelines as Trump-era uncertainty clouds the outlook. Between stalled pharma mergers and looming Wall Street cuts, both investors and executives are holding their breath.