JPMorgan’s Q1 2026 Biopharma Licensing and Venture report said licensing and M&A activity is accelerating, even as venture capital remains selective and risk-averse. The bank reported biopharma licensing partnerships reached $82.7 billion in announced value in Q1 2026, while upfront cash averaged just 6% of deal value—shifting risk into milestone-based back-end payments. The report also pointed to steady M&A momentum, totaling $40.9 billion across 32 deals in the quarter, including Merck’s $6.7 billion acquisition of Terns Pharmaceuticals and Eli Lilly’s $7.8 billion acquisition of Centessa Pharmaceuticals, with $6.3 billion upfront. Meanwhile, VC funding fell to $6.9 billion in Q1 2026 from $8.6 billion a year earlier, reinforcing a widening gap between early-stage and late-stage capital availability. The net effect is a deal market that is active but increasingly stringent on upfront economics and validation.