Biopharma and medtech venture investment continued its strong momentum into 2025, with larger deal sizes despite fewer rounds. Biopharma venture investment held steady with $6.7 billion invested across 109 rounds, while medtech saw $3.7 billion deployed through 117 funding rounds.
The licensing landscape showed significant shifts in Q1 2025, with biopharma licensing deals reaching $56.8 billion in total announced value, marked by higher upfront payments for later-stage programs. The medtech sector saw 286 licensing partnerships disclosed with $3.7 billion in total value, including $871 million in upfront payments.
M&A activity showed divergent patterns across sectors in early 2025, with biopharma seeing 27 transactions totaling $25.2 billion, including one large deal surpassing $14 billion. Meanwhile, medtech M&A activity tempered slightly with 57 acquisitions in Q1 totaling $9.2 billion, but still maintained multiyear-high transaction numbers.
IPO markets remained cautious in both sectors to kick off the new year. Biopharma saw four IPOs on Nasdaq raising $770 million, while medtech completed just two public offerings totaling $467 million. This reflects the continued trend of companies staying private longer to raise larger private rounds.
J.P. Morgan’s biopharma therapeutics and medtech licensing reports explore the movement in each sector, offering insight into industry and investment trends that defined the first quarter of 2025. The reports, powered by DealForma, highlight:
- Venture investment trends and deal values
- Licensing partnerships and R&D collaboration metrics
- M&A activity and transaction patterns
- IPO market performance and capital raised
- Investment focus areas in advanced therapies and technologies
Download these reports to gain deeper insights into current dealmaking trends, and connect with our Startup Banking experts to learn more.
Contributors
Kathryn McDonough
Head of Life Sciences Banking
Skip Kelly
Head of Healthcare VC Coverage, Innovation Economy, J.P. Morgan Commercial Banking
