Flexibility and AI-driven Diligence Are Defining Biopharma Deal Strategy in 2026, Says Baker McKenzie's Oren Livne

At the 2026 BIO International Convention, BioPharm International® spoke with Oren Livne, co-chair North America Healthcare and Life Sciences Group, Baker McKenzie, an international law firm, about licensing and collaboration deals in the life sciences sector. In the interview, Livne addresses how current policy pressures, geopolitical tensions, and artificial intelligence (AI) adoption are reshaping deal structure and due diligence practices.

Livne says tariffs are not blocking deals outright, with companies having largely acclimated and now factoring them into deal economics. Most-favored-nation (MFN) pricing, however, remains a significant concern. Livne explains that companies are adjusting deal models and reconsidering European launch obligations to avoid MFN-related pricing pressure on US revenues. He also notes that large pharma companies are increasingly seeking contract structures that remove mandatory diligence requirements to launch in Europe, given the risk that a European launch could negatively affect US pricing.

How are biopharma companies building contract flexibility to navigate today's policy and geopolitical risks?

Livne emphasizes that flexibility is the most critical structural feature in current licensing agreements. Because products under negotiation today may not launch until possibly a decade later, deal structures must accommodate policy environments that do not yet exist, he states. He also flagged a complicating development in Europe, in which emerging regulatory frameworks may require companies to launch across all European markets if they launch in any single country, which may further limit pricing strategy options.

"Just because we're talking about these policy issues today doesn't mean 7 to 10 years from now, when these products actually launch, that you're going to see those same issues," Livne says. “So, having that more … robust flexibility structure in those deals allows [contracts] to be flexible for the future.”

On due diligence, Livne explains that AI is enabling teams to review significantly larger document volumes without extending deal timelines. China's role in supply chains, data sourcing, and increasingly complex regulatory frameworks are now receiving deeper scrutiny within those diligence processes, he adds.

BIO 2026 was held June 22–25 in San Diego.

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About the speaker

Oren Livne, Co-Chair North America Healthcare and Life Sciences Group, Baker McKenzie

In addition to his role as co-chair, Livne serves as a member of the Global Healthcare & Life Sciences Steering Committee. Before beginning his legal career, Livne co-founded a university technology transfer office and managed its licensing operations, which, together with his MBA, from New York University's Leonard N. Stern School of Business, provide a unique business perspective that he leverages for the benefit of the firm's clients.