Biotech entered 2026 with optimism after a late-2025 rebound driven by dealmaking, financings, and positive clinical readouts, marking a new cycle with rising stock prices and investor interest15.
The J.P. Morgan Healthcare Conference in January 2026 highlighted deal hype with M&A rumors around Revolution Medicines (Merck/AbbVie) and Abivax (Eli Lilly), alongside asset-centric deals in obesity and oncology, though light on megadeals15.
Alpha still hides in high-quality late-stage assets, oncology (pancreatic, breast, bladder), next-gen obesity mechanisms (e.g., Corxel’s $287M Series D), neuroscience/CNS with AI and biomarkers, neuroregenerative medicine, CGT industrialization, and AI in development25.
Recent deals include Pfizer’s $10B Metsera acquisition, Lilly’s $1.9B Repertoire deal, AstraZeneca’s $18.5B obesity deal with CSPC, and AI-driven Formation’s $500M autoimmune asset play23.
Tensions persist from bloated valuations, regulatory uncertainty, FDA tumult, and competition from China, which has surged in new drug development14.
Sources:
1. https://www.biopharmadive.com/news/biotech-pharma-trends-outlook-2026/810833/
2. https://www.labiotech.eu/in-depth/2026-biotech-trends/
3. https://www.fiercebiotech.com
4. https://www.science.org/doi/10.1126/science.aef7757
5. https://www.biospace.com/deals/biotechs-next-chapter-asset-centric-deals-and-shifting-alpha-at-jpm-2026