The collective capacity for M&A in the biopharma industry is a result of complex market factors, but at the granular level, every company has its own reasons for dealmaking. Cash reserves, valuations, the state of the pipeline — so many factors determine whether a single company, not to mention a whole sector, is ready to come to the table.

For several years after the beginning of the COVID-19 pandemic, M&A remained relatively uneventful in biopharma with both the volume and size of deals taking a nosedive. Megadeals were largely nonexistent. But a slew of acquisitions — from Amgen's purchase of Horizon Therapeutics at the end of 2022 to the much-anticipated cancer deal between Pfizer and Seagen — have shown that the industry is opening up the purse strings and betting on innovative companies with promising science.

Here’s a look at the steady comeback of biopharma M&A and the steps the industry took to get here.