Dealmaking across the life sciences sector continued to break records in 2021. Biopharma therapeutics and discovery platform companies led the way in licensing and venture attraction, and medtech activity remained above its pre-pandemic levels.

J.P. Morgan’s Biopharma and Medtech Deals and Funding outlook report looks back at activity in the previous year to provide insights on industry trends we might see in 2022. The report, powered by DealForma, highlights:

  • R&D partnerships: The number of deals fell slightly last year, coming off an abundance of activity in 2020 fueled largely by the COVID-19 crisis.
  • Upfront cash: Despite the pandemic driving record revenues for top pharma companies, upfront cash dropped $6 billion in 2021.
  • Preclinical IPOs: These offerings are becoming more common as companies go public sooner in their development timeline.
  • Biopharma venture investment: Funding through 2021 hit $39 billion, surpassing the $26 billion raised in 2020.
  • Potential acquisitions: Combined with end-of-the-year deals and licenses, the amount of cash in the market has set the stage for more acquisitions in 2022.