Chris Dokomajilar

Early-stage biopharma funding rebounded in 2025, but Q1 2026 is mixed: softer at platform/preclinical, while Phase II–III remains resilient with dollars and check sizes holding near 2025 levels.

Biopharma and healthcare VC investment rebounded in 2025 to $55.1B (1,309 rounds), up from $48.4B in 2024, with biopharma specifically increasing to $28.6B. Momentum has carried into Q1 2026 with several large $100M+ rounds.

Big pharma in-licensing remains heavily skewed toward early-stage assets, with platform/discovery deals consistently making up ~60–70%+ of activity, rising to ~75% in 2026 YTD. Late-stage (Phase II–III) deals continue to represent only a small share.

ADC deal activity remained strong in 2025, with total value reaching ~$25.8B across 36 deals and median upfronts rising to ~$60M, signaling continued demand for high-quality assets. In 2026 YTD, activity is more muted (~$0.6B; 6 deals)

Big pharma in-licensing spend is heavily concentrated in oncology and biologics, with cancer driving the majority of upfront payments each year and biologics/antibodies/ADCs dominating modality spend (peaking at ~$9.7B in 2025).

Biopharma & medtech entered 2026 with selective momentum, with J.P. Morgan’s reports — powered by DealForma — highlighting strong licensing, M&A, and early IPO recovery. Download the full reports for deeper insights. na2.hubs.ly/H054J2j0

Upfront payments remain relatively compressed across stages (~$49M–$215M), but total deal value expands significantly in later stages, driven by milestones—peaking around ~$2.0B in Phase II and ~$1.3B in Phase III.

From 2023–2025, upfronts increased with stage, with later-stage deals commanding the highest premiums. In Q1 2026, this trend accelerated—Phase II median upfront hit ~$650M (single deal) and Phase I ~$180M—showing a shift toward fewer, high-value later-stage deals.

Large-cap biopharma dealmaking from 2024–2026 YTD is led by Eli Lilly, Roche, and Novartis in volume, with activity heavily skewed toward R&D partnerships over M&A. In terms of value, Novartis ($47.8B), AstraZeneca ($38.7B), and Eli Lilly ($38.0B) lead in in-licensing spend

Big pharma significantly increased sourcing from Chinese biopharma through 2025, with deal value rising to $68.7B across 19 large transactions, alongside growing upfront payments. In Q1 2026, China accounted for ~50% of big pharma deals and ~75% of upfront capital.

Licensing upfronts in 2025 were relatively balanced across regions (~$5.0B U.S., $5.1B EMEA, $7.3B APAC), with APAC leading overall. In Q1 2026, activity shifted sharply toward APAC, which generated $3.4B in upfronts, compared to $1.4B in the U.S. and just $0.4B in EMEA.

Neurology deal activity in 2025 was mixed, with weaker R&D partnerships offset by strong M&A growth, steady venture funding, and improved IPO activity, signaling confidence in later-stage and clinically validated assets. Read our research na2.hubs.ly/H050ctV0

China is leading large biopharma licensing deals in early 2026, with strong M&A activity and continued momentum showing sustained dealmaking and bigger payouts despite a slight dip in deal volume. Read it here na2.hubs.ly/H050cC_0

Biopharma licensing reached a record in 2025 with $259.6B total value and $17.1B upfront across 468 deals, and in Q1 2026 delivered $79.4B total value and $4.9B upfront vs. $61.6B and $5.2B in Q1 2025, with top upfronts led by CSPC/AstraZeneca ($1.2B) and RemeGen/AbbVie ($650M).

Biopharma deal activity in 2025 was solid but uneven, with quarterly volume ranging from 167 to 201 deals and stronger value driven by larger licensing and M&A transactions.

Healthcare deal activity rose meaningfully in 2025, reaching 4,370 deals and $607B in announced value, up from 3,890 deals and $412B in 2024, reflecting a strong rebound across the sector.

Our Q1 2026 review reflects a more selective and disciplined market, with capital concentrated in high-value partnerships and mid-sized M&A, while venture funding and IPO activity softened, suggesting a cautious yet active investment environment. na2.hubs.ly/H04X_HS0

Cancer dealmaking in 2025 shifted toward value over volume, with larger, more strategic transactions in R&D and M&A, while venture funding and IPOs reduced, reflecting a selective and resilient investment environment. Read our research na2.hubs.ly/H04Mkq90

Stifel's latest report shows a strong momentum for the biopharma sector in 2026 with robust M&A activity, improving investor sentiment, and continued scientific innovation, supported in part by data tracked by DealForma. Read it here na2.hubs.ly/H04MjVb0

In 2025, biopharma therapeutics and platforms IPO financing completed 279 IPOs, follow-on, and PIPE transactions, raising $40.8B, down from 306 deals totaling $49.6B in 2024, reflecting a more selective funding environment and softer market appetite. na2.hubs.ly/H04tQcs0