After a relatively quiet 2016, pharma M&A is expected to become more active in 2017, though industry concerns in the U.S. remain acute about a possible successor to the U.S. Affordable Care Act, as well as government policy on drug pricing. Last year’s slow deal environment means there is a backlog of biotechs who could pursue IPOs or go for a deal with a major firm. If the new U.S. administration follows through on its promise to allow companies to repatriate billions of dollars of locked-down cash from overseas, this would support an upsurge in biotech M&A this year and make IPOs less attractive, though venture capital funding remains plentiful for those companies wishing to remain private. Pharma is an international industry, including in M&A; China is gradually moving into a lead position both in regional biotech and as a center for clinical research organizations and may well join Japan on the acquisition trail.