After a steady start to the year, biopharma and medtech capital markets saw selective momentum in the third quarter. In biopharma, public biotech market performance strengthened and IPO activity improved, while venture funding moderated. In medtech, M&A remained the most active channel, exceeding full-year 2025 deal value despite slower dealmaking in the third quarter.

Biopharma licensing led the way, with announced R&D value reaching $221.1 billion through Q3 2026 and upfront cash at 6% of total deal value. M&A totaled $138.9 billion across 113 deals, with $31.1 billion from 32 deals in Q3. Venture funding reached $23.9 billion across 385 rounds year-to-date and IPOs maintained a strong pace. As of Q3, 22 offerings raised $7.5 billion, surpassing every full-year total from 2022 through 2025 in both proceeds and offering count.

In medtech, 42 M&A deals totaling $15.0 billion in Q3 brought the year-to-date total to $64.1 billion across 141 deals. Venture funding reached $8.0 billion across 278 rounds, including $2.7 billion in Q3. Two IPOs came to market through Q3, raising $710 million. Licensing value reached $6 billion, with only 2% as upfront cash.   

The J.P. Morgan Biopharma and Medtech Licensing and Venture Reports, powered by DealForma, explore sector activity and deal trends through Q3 2026. Highlights include:

• Licensing deal values, upfront economics and the role of milestone-heavy structures
• M&A deal value, deal count and median upfront payments across both sectors
• Venture funding by stage, round size and the shift toward later-stage capital
• Biopharma trends in obesity and diabetes licensing, China-origin asset sourcing and modality-level investment patterns

Download these reports for a deeper look at current dealmaking trends—and connect with our Startup Banking Innovation Economy team experts to explore what they mean for your business.