The lat­est BP­SI shows sig­nif­i­cant im­prove­ments in bio­phar­ma con­di­tions but rais­es ques­tions about what comes next.

Bio­phar­ma’s mood isn’t just run­ning on hopes any­more.

The Bio­phar­ma Sen­ti­ment In­dex took an­oth­er step for­ward in Q2. The head­line sen­ti­ment score climbed to 96, up from 90 in Q1 and 78 in Q4 2025. In­dus­try sen­ti­ment is now with­in strik­ing dis­tance of the neu­tral (100) line for the first time since the four-year down­turn that fol­lowed the pan­dem­ic.

Pre­vi­ous im­prove­ments in sen­ti­ment were led by growth in ex­pec­ta­tions for the fu­ture. This quar­ter, cur­rent con­di­tions surged while the 12-month out­look bare­ly budged. It’s a sign the re­cov­ery is show­ing up in the day-to-day.

But there are a few hair­line cracks in the oth­er­wise sol­id re­sults. The biggest: The 12-month out­look for fund­ing fell 13 points, dip­ping back in­to neg­a­tive ter­ri­to­ry. If our sur­vey re­spon­dents are cor­rect, 2026’s record-break­ing pace of fundrais­ing may be as good as it gets.