New reports published by J.P. Morgan show that while M&A (mergers and acquisitions) activity was up and IPO (initial public offering) activity remained subdued, it was licensing that proved to be the primary driver of value for biopharma and medtech companies in 2025.
Licensing leads the way
Biopharma licensing partnerships, covering the use of intellectual property (IE), drove over $252 billion through Q4 2025, the highest level since 2016.* The Q4 period alone saw 20 partnership deals announced for medtech businesses, with those agreements worth $200 million, bringing the total for the year to $10 billion.**
A healthy M&A environment
M&A activity throughout the year was robust, with $138 billion generated in 129 biopharma deals. In the medtech sector the 27 deals announced in Q4 generated $43.4 billion.
The IPO market continued to be relatively muted, remaining a secondary exit path relative to M&A and licensing at the moment.
Other topics of interest covered include:
Biopharma:
- Biologics and small molecules continued to dominate licensing value in 2025
- Obesity and diabetes dealmaking reached record levels in 2025
- Chinese biopharma remained a significant source of large-cap licensing activity
Medtech:
- A look at which U.S. medtech hubs captured majority share of venture capital in 2024–2025
- The mega-deals that dominated licensing and M&A
Download both full reports to access facts, statistics and insights on these points and other related topics.
Download the BIOPHARMA REPORT
Download the MEDTECH REPORT
Want to learn more?
Listen to ‘From lab to liquidity: IPO readiness for healthcare companies’ on the Prosperity at Work podcast where we discuss the importance of beginning conversations early, tax planning for incentives stock options, Food and Drug Administration (FDA) approvals, blackout periods, trading windows and more.
*Source Q4 2025 Biopharma Licensing and Venture Report
**Source Q4 2025 Medtech Licensing and Venture Report
This publication contains general information only and J.P. Morgan Workplace Solutions is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. J.P. Morgan Workplace Solutions’ Insights is not a substitute for professional advice and should not be used as such. J.P. Morgan Workplace Solutions does not assume any liability for reliance on the information provided herein.