Biotech equities rallied into 2026 as the sector’s exchange‑traded fund XBI jumped on a wave of M&A announcements and easing rate expectations. Executives and investors are entering the JP Morgan Healthcare Conference buoyed by increased deal flow, lower financing costs and signs of renewed investor appetite. The surge reflects pockets of concentrated activity — strategic M&A, IPOs in AI‑drug discovery and regional regulatory openings — rather than a uniform recovery across every subsector.