Life sciences deals: By the numbers
The biopharma and medtech deal space has seen several ups—and a few downs—since 2020. Despite market volatility in the first quarter of 2022, many of these changes point to opportunities for life sciences companies to build on their strengths and grow. Here are some key trends from J.P. Morgan’s latest Biopharma and Medtech Deals and Funding report, powered by DealForma.
Ups
Upfront payments across the top three therapy areas—cancer, neurologic and infectious—have more than doubled from 2019 ($9.0 billion) to Q1 2022 ($18.2 billion).
Graphic: Three stacked charts (horizontal) showing the dollar amounts invested in the top three categories. We also have a pull quote from Skip Kelly, JPMorgan’s Managing Director of Venture Capital Relationships off to the side of the charts.
Data =
2018-‘19
Cancer therapy: $5.5B
Neurologic therapy: $2.8B
Infectious therapy: $.7B
2020-Q1 ‘22
Cancer therapy: $11.3B
Neurologic therapy: $5.2B
Infectious therapy: $1.5B
Pull quote that goes with graphic: “While life sciences and healthcare fundraising is down slightly from the unprecedented levels we saw over the past few years, the pace is still healthy, and there’s ample capital to invest in compelling founders and technology.” –Skip Kelly, Managing Director, Venture Capital Relationships
Graphic: A big plus sign enclosed in a circle
Callout text that goes with graphic: Upfront cash and equity for hematologic therapies soared from virtually zero to nearly $1 billion from 2018 to 2021.
Graphic: Large text that reads “2x Medtech Venture Funding”
Total funding doubled for medtech venture deals, going from $18.2 billion in 2020 to $36.4 billion in 2021.
Graphic: Three horizontal bar charts showing biopharma venture investment funding by quarters for 2020 and 2021 and Q1 2022.
Data =
Q1 2020: $5.5B
Q2 2020: $5.7B
Q3 2020: $7.9B
Q4 2020: $7.9B
Q1 2021: $12.6B
Q2 2021: $9.1B
Q3 2021: $9.6B
Q4 2021: $8.3B
Q1 2022: $6.3B
Callout text that goes with graphic: Biopharma venture investment funding hit $39 billion last year, easily topping the $26 billion raised in 2020. Q1 2022 funding seems to indicate a return to 2020 levels.
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Downs
While Q1 2022 presented the market with a lot of downward trends, these areas were already feeling strained at the end of 2021.
Graphic: Line charts showing the number of R&D partnerships over the past three years.
Data =
2019: 623
2020: 828
2021: 745
Text: Biopharma R&D partnerships dropped from their COVID-driven peak in 2020, returning closer to their pre-pandemic levels.
Graphic: Pie chart with “- 38%” in the center.
Text: M&A upfront cash and equity for biopharma companies fell by more than one-third from 2020 to $69.8 billion in 2021, not counting contingent values.
Graphic: Pie chart with “- 27%” in the center.
Text: Licensing upfront cash and equity for therapeutics and platforms dropped to $13.3 billion in 2021, down 27% from 2020.
Banking that grows with you
Navigating the ebbs and flows of the life sciences landscape requires a bank that’s seen it all. J.P. Morgan’s team of experts can support life sciences and healthcare companies at all stages—from pre-profit to IPO. Together, we can help you fund innovation, scale your business, manage your assets and reach your goals.
