The 44th Annual J.P. Morgan Healthcare Conference saw a focus on internal pipeline prioritisation and bolt-on licensing agreements, with industry experts noting an absence of large biopharmaceutical mergers and acquisitions (M&A) announcements typically expected, says GlobalData, a leading intelligence and productivity platform.
Alison Labya, Senior Pharma Business Fundamentals Analyst at GlobalData, comments: “Lower interest rates and Trump-era deregulation drove momentum in large biopharmaceutical M&As in 2025, with reduced uncertainty around the impact of Trump’s tariff policies in H2 2025 further strengthening capital markets.”
Improving macroeconomic conditions sustained a positive sentiment for M&A activity in 2026 as GlobalData’s recent M&A Trends in Pharma – Q4 2025 report revealed a 59.3% uptick in total M&A deal value in Q4 2025 compared to the Q3 2025, totaling $80.2 billion. Furthermore, according to GlobalData’s recent Venture Capital Investment Trends In Pharma – Q4 2025 report showed a recovery in biotech venture financing with a 35% increase in total deal value in Q4 2025 to $5 billion compared to Q3 2025.
Moreover, the public markets are showing early signs of reopening. In Q4 2025, IPO deal volume surged by 157% compared to Q4 2024, according to GlobalData’s Pharma Intelligence Center Deals Database. Aktis Oncology was the first biopharmaceutical IPO completed in 2026 raising approximately $365m. Eikon Therapeutics and Veradermics also plan to go public in 2026 with IPOs announced this month.
Prior to the J.P. Morgan Healthcare Conference 2026, rumors emerged that Merck & Co might acquire Revolution Medicines for $32 billion and that Eli Lilly might acquire Abivax for €15 billion ($17.5 billion), though neither was confirmed at the conference. Merck & Co’s CEO, Robert Davis, commented during its company presentation that it is open to deals of “multi tens of billions of dollars“, highlighting an appetite for large-scale biopharmaceutical deal-making.
AbbVie kicked off the conference with the announcement of its licensing agreement for the development, manufacturing and commercialization of China-based biotech RemeGen’s Phase II bispecific antibody drug, RC148, for the treatment of advanced solid tumors. The deal is valued at $5.6 billion.
Meanwhile, Novartis signed a worldwide licensing and collaboration agreement with China-based company SciNeuro Pharmaceuticals worth over $1.6 billion for its de novo amyloid beta antibody drug candidates for the treatment of Alzheimer’s disease. Novartis also entered into a worldwide licensing agreement for $50 million with China-based biotech Zonsen PepLib Biotech, in exchange for global rights to an undisclosed peptide-based radioligand therapy for oncology indications.
China has the ability to conduct faster and more cost-effective clinical trials and is therefore a source for innovative drugs, particularly in oncology. This contributed to a growth in Western biopharmaceutical companies in-licensing innovative drugs from Chinese drug developers over the past five years. In 2025, licensing agreements involving US biopharmaceutical companies in-licensing an innovative drug from China reached almost 50%, according to GlobalData’s Pharma Intelligence Center Deals Database, with this trend poised to continue into 2026.
Labya continues: “Industry experts at the conference expressed the need for the US to invest in R&D and foster a supportive policy environment for biopharmaceutical innovation to prevent losing its market dominance to China.”
Labya concludes: “The biopharmaceutical industry entered 2026 with renewed optimism for dealmaking. Although a trend towards more selective deal-making was seen at the J.P. Morgan Healthcare Conference 2026, there remains potential for large M&As as pharma companies seek to mitigate revenue losses from upcoming patent expiries, driving demand for companies de-risked, late-stage assets.”
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