Q3 2026 dealmaking cooled across every channel, with value falling faster than volume. R&D partnership value fell 43.7% to $47.9B across 135 deals, led by Sail Biomedicines and J&J ($785M upfront) and InnoCare and Lilly (up to $100M near term plus $3.3B in milestones). M&A followed the same path, with value including contingents down 49% to $57.1B across 120 deals, anchored by Vertex’s approximately $10B acquisition of Crinetics and Curium’s up to approximately $8B take-private of Lantheus. Private financing also slowed, as venture funding fell 14% to $12.4B across 293 rounds, led by Neko Health ($700M) and Function Health ($450M). In public markets, IPO proceeds dropped 43.2% to $2.5B across 10 IPOs, led by ADARx Pharmaceuticals ($446M) and Braveheart Bio ($440M including its option).
Global Healthcare and Life Sciences R&D Partnerships
Global healthcare and life sciences R&D partnership activity slowed in Q3 2026. The quarter recorded 135 deals worth $47.9B, down from 151 deals and $85.1B in Q2. Deal volume fell roughly 10.6%, while total deal value dropped by a much sharper 43.7%. Upfront cash and equity also declined about 19%, to $3.4B from $4.2B. Upfront payments per deal, however, moved higher. The average did not change, $86M, while the median rose 24% to $31M from $25M. Both measures point to relatively resilient upfront economics, even as fewer and lower-value partnerships were announced. Across Q2 and Q3 combined, the sector recorded 286 partnerships worth approximately $133B, with $7.6B in upfront cash and equity.
Prominent Global Healthcare and Life Sciences R&D Partnerships in Q3 2026
Sail Biomedicines research partnership with Johnson & Johnson – July 2026
Sail Biomedicines entered a research partnership with Johnson & Johnson (J&J) to develop in vivo CAR-T cell therapies for immune-mediated diseases. Signed at the platform/discovery stage, the deal combines Sail’s AI-driven eRNA and targeted nanoparticle platform with J&J’s clinical development, manufacturing, and commercialization capabilities. The collaboration aims to advance Sail’s lead in vivo CAR-T therapy for autoimmune diseases and develop additional in vivo CAR-T candidates. Sail will receive a total of $785M upfront, including a $465M equity investment, and is eligible for up to $140M in development milestones. J&J also holds an exclusive option to acquire Sail. If the option is exercised, Sail will receive an additional $2.6B.
InnoCare development and commercialization deal with Eli Lilly – September 2026
In September 2026, InnoCare granted Eli Lilly and Company (Lilly) rights to develop and commercialize up to 5 therapies against undisclosed targets. Signed at the platform/discovery stage, the partnership draws on InnoCare’s R&D platform and extensive research expertise. InnoCare will receive up to $100M in upfront and near-term payments (breakdown not disclosed) and is eligible for up to $3.3B in development and commercial milestones, plus single-digit tiered royalties. Most of the deal’s value is therefore tied to milestones.
Global Healthcare and Life Sciences M&A
Global healthcare and life sciences M&A activity slowed markedly in Q3 2026. The quarter recorded 120 announced deals, down 31.8% from 176 in Q2. Total M&A value, including contingent payments, fell 49% to $57.1B from $112.0B. Cash value, excluding contingents, declined by 45.8% to $50.2B from $92.7B. Deal sizes also softened, with average upfront cash and equity easing about 6.3% to $1357M from $1448M. The median fell more sharply, down 25% to $450M from $604M. Overall, Q3 marked a clear pullback in both volume and value after a much stronger Q2. Average deal size, however, remained relatively high. Across Q2 and Q3 combined, the sector recorded 296 transactions worth $169.1B, including contingents, and $142.9B in cash, excluding contingents.
Prominent Global Healthcare and Life Sciences M&A in Q3 2026
Vertex acquired Crinetics Pharmaceuticals – July 2026
Vertex acquired Crinetics Pharmaceuticals, whose approved Palsonify (paltusotine) is the first and only once-daily oral therapy for adults with acromegaly. The pipeline adds atumelnant, a once-daily oral ACTH receptor antagonist in Phase 3 for congenital adrenal hyperplasia (Phase 2 in children); Phase 3 paltusotine for carcinoid syndrome; Phase 1 CRN-09682 for neuroendocrine tumors; and preclinical endocrine, metabolic, and kidney programs. Driven by Palsonify and atumelnant, the deal is expected to generate over $5B in annual revenue and improve profits from 2029 onward. Vertex paid $85 per share in cash, a 102% premium to the last close, for a total equity value of approximately $10B ($8.8B net of estimated cash acquired). The acquisition closed on September 1, 2026.
Curium acquiring Lantheus Holdings to take the company private – August 2026
Curium agreed to acquire Lantheus Holdings and take it private, with closing expected in H1 2027. Lantheus’ portfolio includes Pylarify (PSMA-positive prostate cancer), Definity (echocardiography), Neuraceq (Alzheimer’s disease), and TechneLite (nuclear medicine imaging agents). The combined radiopharmaceutical company, pairing Curium’s theranostics and global manufacturing with Lantheus’ US radiodiagnostics, will serve more than 70 countries. Lantheus shareholders will receive $102.50 per share in cash plus a non-transferable contingent value right (CVR) of up to $12 per share, valuing the deal at up to approximately $8B. This represents premiums of 14.9%, 29%, and 38% to the prior-day close and the unaffected 30- and 60-day VWAPs, respectively. CVR payments are tied to 2030 prostate cancer diagnostics sales (up to $8), FY2028 to FY2030 neurology diagnostics sales (up to $3), and Definity 2030 sales above $400M ($1).
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Global Healthcare and Life Sciences Venture Activity
Global healthcare and life sciences venture activity declined in Q3 2026. Companies completed 293 financing rounds, down 11% from 330 in Q2. Total capital raised also fell 14% to $12.4B from $14.4B. Together, the two declines point to a broader slowdown in both financing activity and capital deployment. Despite the weaker quarter, venture funding remained substantial. Across Q2 and Q3 combined, the sector recorded 623 financing rounds and $26.8B in total capital raised.
Prominent Global Healthcare and Life Sciences Venture Activity in Q3 2026
Neko Health – Series C – $700M – July 2026
Neko Health raised a $700M series C in July 2026, led by Lightspeed Venture Partners and co-led by O.G. Venture Partners, with Atomico, General Catalyst, and Lakestar returning. The round reportedly values the Daniel Ek co-founded company at nearly $7B, up from $1.8B at its $260M series B in January 2025. Its 60-minute, radiation-free scan maps the skin for melanoma risk and suspicious moles, checks the heart and circulation for arrhythmia, arterial stiffness, and heart attack and stroke risk, and adds body composition and on-site blood tests for cholesterol, HbA1c, and inflammation, with results reviewed by a clinician at the same visit. More than 100,000 scans have been completed in the UK and Sweden, 75% of members prepay for a follow-up, and the capital funds a US launch starting in New York in 2026 at $499 per scan.
Function Health – Series Unspecified – $450M – July 2026
Function Health secured $450M in growth financing from General Catalyst’s Customer Value Fund (CVF) in July 2026, about eight months after its $298M series B; the structure and terms were not disclosed. The Austin-based platform bundles more than 160 lab tests, starting at $365 a year, with MRI and CT imaging at over 200 US locations, and members have completed more than 100 million lab tests since its 2023 launch. Acquisitions of Ezra (full-body MRI), Getlabs (at-home blood draws), and SuppCo (supplements) have broadened the offering, and the new capital will help bring the platform to millions more people. The financing adds scale in consumer-paid preventive care.
Global Healthcare and Life Sciences IPO Activity
Global healthcare and life sciences IPO activity weakened in Q3 2026. Completed IPOs dropped 28.6% to 10 from 14 in Q2. Total capital raised fell even more sharply, down 43.2% to $2.5B from $4.4B. The steeper decline in proceeds implies Q3 listings were generally smaller, reflecting more subdued public financing. Across Q2 and Q3 combined, the sector recorded 24 IPOs raising a total of $6.9B.
Prominent Global Healthcare and Life Sciences IPO Activity in Q3 2026
ADARx Pharmaceuticals, IPO, $446.3M – September 2026
ADARx Pharmaceuticals priced an upsized IPO of 26,250,000 shares at $17.00 in September 2026, raising approximately $446M before any exercise of the underwriters’ option on 3,937,500 additional shares. A concurrent private placement to AbbVie for about 4.9% of outstanding shares lifts combined gross proceeds to approximately $535M. The stock trades on the Nasdaq Global Select Market as ADRX. Lead asset onvuzosiran (ADX-324), a prekallikrein-targeting siRNA designed for twice-yearly dosing, is in the Phase 3 STOP-HAE trial for hereditary angioedema prevention and holds FDA Orphan Drug Designation. Complement siRNA agazisiran is in Phase 2 across kidney, blood, and eye diseases, Factor XI siRNA ADX-626 is in Phase 1 for stroke prevention, and obesity and Alzheimer’s programs target the clinic in 2027. AbbVie, which paid $335M upfront in 2025 for an siRNA collaboration and license option, adds strategic validation.
Braveheart Bio – IPO – $439.9M – August 2026
Braveheart Bio priced an upsized IPO of 21,250,000 shares at $18.00 in August 2026, raising $383M; full exercise of the underwriters’ option for 3,187,500 shares lifted gross proceeds to $440M. The stock trades on the Nasdaq Global Market as BRVE. Lead asset BHB-1893, a next-generation oral cardiac myosin inhibitor licensed from Hengrui Pharma outside Greater China, is in Phase 3 in China for obstructive hypertrophic cardiomyopathy (oHCM). In a 42-patient Phase 2 oHCM study, 50% to 86% of patients across dose groups achieved a complete Valsalva LVOT gradient response over 12 weeks, with no LVEF readings below 55%. Braveheart plans global trials in obstructive and non-obstructive HCM in late 2026 and early 2027.
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