The biotech M&A bonanza shows no sign of slowing down and is boosting trusts able to identify assets that are attractive to acquirers. One such fund is the International Biotechnology Trust (LON:IBT), which has now seen nine portfolio companies acquired in 2026-to-date. That matches the total number of IBT portfolio takeovers seen in the whole of 2025.
IBT’s managers Ailsa Craig and Marek Poszepczynski have a knack for spotting takeover targets. And portfolio company Silence Therapeutics has become the latest holding to draw a bid.
Silence has agreed to be acquired by American drug giant Merck (NYSE:MRK) for $20 per share in cash. The bid price represents a premium of 130% to Silence’s undisturbed share price on 16 October.
Ninth takeover of 2026
As at 16 October, Silence represented 0.7% of IBT’s NAV (net asset value). Silence is a UK-based clinical-stage biotechnology company developing precision engineered medicines using proprietary technology.
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And the acquisition comes just two months after London-based Silence announced positive phase 2 trial results for its Divesiran treatment for polycythemia vera, a rare form of blood cancer.
Shopping spree continues
Craig and Poszepczynski commented: ‘The pharmaceutical sector’s shopping spree for biotech companies continues, with pharma firms willing to pay significant premiums for innovative biotech businesses in the face of a historic wave of patent expiries in the coming years.
‘We have now seen nine portfolio companies acquired so far in 2026, matching the total for 2025 and showing the effectiveness of our stock selection process, which evaluates biotech companies through the same lens as potential acquirers.’
We regard IBT as one of the best ways for private investors to gain exposure to a sector with long-term structural growth drivers. An ageing global population, rising chronic disease burden and increasing pressure on government finances are driving sustained demand for more effective healthcare solutions.
| AIC Healthcare & Biotechnology Sector | Discount/Premium to NAV | 10-yr share price total return |
| International Biotechnology Trust | -3.6% | 187.8% |
| Polar Capital Global Healthcare | +0.2% | 146.3% |
| Biotech Growth Trust | -7.8% | 98.1% |
| Worldwide Healthcare Trust | -7% | 91.9% |
| Syncona | -24.6% | 3.1% |
Source: The AIC/Morningstar
Craig and Poszepczynski’s risk-conscious approach has delivered impressive alpha in rising and falling markets alike. Their secret sauce is the analysis of companies through the same lens as pharmaceutical business development departments.
They insist the structural drivers of M&A remain ‘firmly in place, as the acquisitions we have seen this year only scratch the surface of the pharmaceutical sector’s patent cliff.’
