Biopharma and medtech capital markets built on a steady start to the year, with capital moving toward later-stage assets and established programs. In biopharma, several large licensing deals and two straight quarters of $40 billion-plus M&A pulled venture and IPO activity higher. In medtech, buyer demand kept M&A as the primary exit channel, with venture funding remaining steady but subdued and IPO activity selective.

Biopharma licensing led the way, with announced R&D value reaching $166.7 billion in the first half of the year and upfront cash at 6% of total deal value. M&A totaled $96 billion across 80 deals in H1 2026, with $55.1 billion from 48 deals in Q2. Venture funding reached $16.3 billion across 235 rounds in the first half and IPOs rebounded—13 offerings raising $5.0 billion, topping every full-year total from 2022 through 2025.

Medtech activity reflected a measured pace throughout H1 2026. M&A reached $48.9 billion across 92 deals, including $22.3 billion from 47 deals in Q2. Venture funding totaled $5.0 billion across 164 rounds, with $2.5 billion in Q2. Two IPOs came to market, raising $710 million, and while licensing brought in $5.8 billion, only 1% was upfront cash.

The J.P. Morgan Biopharma and Medtech Licensing and Venture Reports explore sector activity and deal trends that shaped the first half of 2026. The reports, powered by DealForma, highlight:

• 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
• Emerging 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 experts to explore what they mean for your business.