Whilst we are probably waiting for the biotech IPO cycle to bottom out in Europe, secondary financings have been going strong and have been higher in value even if the number of issuances has fallen a little. Biotech M&A has continued e.g. the acquisitions of Actelion and Ariad.
In the meantime, pricing pressure has become a feature of the broader drug industry and whilst investors are optimistic in their sales and earnings forecasts for pharma companies few are factoring in pricing pressure in big drug classes in the future e.g. anti-TNF inhibitors. This could create pressure on pharma to deliver against high growth expectations in future.
Add in a dash of US tax reform, a need for cutting edge innovation and there will be pressure for M&A to continue.