The iShares Biotechnology ETF surged 51% over the past year, doubling the S&P 500’s return amid renewed M&A activity.
The iShares Biotechnology ETF (IBB) rose 51.45% over the past year, outpacing the S&P 500’s 9.22% year-to-date gain. The sector’s rally follows a leadership change at the FDA, which lifted a dealmaking freeze that had stalled acquisitions like an AMGN deal earlier this year.
IBB climbed 16.06% year-to-date and 19.15% in the last month, driven by Eli Lilly’s four acquisitions in Q1 2026 alone. Analysts highlight dislocations like ALNY’s 21% YTD drop despite 187% revenue growth, signaling potential takeover targets.
Market focus shifts from semiconductors to biotech as strategic buyers seek RNAi and other capabilities, with expectations of increased deal flow ahead.