Report Summary:

Emerging biopharma companies – those with R&D spending less than $200Mn and revenues less than $500Mn a year – have become central to biomedical innovation over the past decade, driving the majority of novel drug launches, notably in specialty, orphan, and first-in-class categories. Their agility, resilience, strategic diversity, and focus on unmet needs position them as engines of progress in the health system.

Increasingly these companies are exploring commercial markets on their own and there have been demonstrated successes with these efforts. However, challenges remain in funding, commercialization, and achieving sustained market success.

Key Findings:

• Emerging biopharma companies – those with R&D spending less than $200Mn and revenues less than $500Mn a year – have become central to biomedical innovation over the past decade, driving the majority of novel drug launches, notably in  specialty, orphan, and first-in-class categories. Their agility, resilience, strategic diversity, and focus on unmet needs position them as engines  of progress in the health system. Increasingly these companies are exploring commercial markets on their  own and there have been demonstrated successes with these efforts. However, challenges remain in funding, commercialization, and achieving sustained market success.
• Funding for EBPs continues and increasingly includes a focus on China-originated assets. Large ($2Bn+) deals in 2025 through July exceeded the full year 2024 total and are set for another large year with a focus on oncology, obesity, neurology, and AI.
• EBPs demonstrate higher productivity than larger companies, driven by less complex and faster trials despite lower success rates.
• EBPs commercialized 197 of 497 U.S. NAS launches in the past decade, including 205 drugs through the abbreviated 505(b)(2) pathway. Their share of launches has grown, reaching 46% of NAS and 56% of 505(b)(2) launches from 2020–2024. U.S.-headquartered EBPs represented 74% of U.S. EBP NAS launches in the past 10 years, and 80% of 505(b)(2)s.
• Post-launch, EBPs often continue to market drugs, out-license, or are acquired. Of the 197 NAS initially commercialized by 176 EBPs, 69 companies retained the drug, 58 were subsequently acquired, and 21 companies out-licensed the launched drug while remaining in operation for the development and commercialization of other assets. Acquisitions of EBPs following product launch were valued at more than $171Bn, with notable deals including AstraZeneca’s acquisition of Alexion for $39Bn and Gilead’s acquisition of Immunomedics for $21Bn.
• Launch success across product types is most often associated with expansive plans to demonstrate efficacy to diverse stakeholders. Evidence development beyond initial approval, realistic product assessments, and efficient promotional activity are key. Follow-on approvals for new indications, populations, or formulations drive sustained growth, though not all drugs are suited for such opportunities.