Each quarter, Locust Walk’s deal team compiles key statistics and trends on strategic transactions and financings. Our 2026 Q1 Market Conditions Report applies the latest data to analyze the current landscape in life sciences deals.

Q1 2026 global biopharma dealmaking remained robust, with licensing activity sustaining elevated levels driven by early-stage assets & continued China expansion, while M&A normalized at an elevated level following late-2025 peaks.

• Globally, licensing activity in Q1 2026 tied a three-year high in aggregate deal value, transaction volume, and average deal size, reinforcing durability of the elevated dealmaking environment established in 2025.
• China-based sellers continued to expand their leadership in global licensing economics, accounting for ~66% of total deal value in Q1 2026 (vs. ~31% for U.S. sellers and up from 48% in 2025), driven by higher-value early-stage transactions rather than volume displacement of U.S. or EU/UK activity.
• In Q1 2026 upfront economics within licensing deals rebounded in absolute terms but remained modest relative to headline deal values.
• Notably, Europe/UK saw a broad-based pullback in Q1 2026 with activity declining across licensing as well as in EU/UK M&A and private financings.

Capital markets strengthened further in Q1 2026 with IPO activity reopening meaningfully, venture financing reaching multi-year highs, and sector stress indicators improving, despite macro volatility.

• U.S. public and private capital markets: Continued to strengthen in Q1 2026, with IPO activity reopening meaningfully and venture financing reaching multi-year highs.
• APAC Capital Markets: Delivered a mixed performance in Q1 2026 with China leading private market recovery but with only one IPO, Japan reopening IPO access, and South Korea showing early signs of venture stabilization.
• European/UK Venture Markets: Remained challenged in Q1 2026, with financing activity declining toward three-year lows amid continued capital concentration.

Q1 2026 opened the year on a robust note, with dealmaking activity sustaining multi-year highs and capital markets continuing to build on the momentum established in 2025, signaling durable strength across the biopharma landscape.

We invite you to read our report and welcome the opportunity to discuss its contents with you.