​​Life Sciences Funding in View​

Key Takeaways

• Globally, life sciences VC activity was slightly higher in 2025, while the IPO market experienced a down year. The U.S. continued to dominate deal volume, followed by China and the UK. Activity strengthened in the second half of the year, pointing to improving momentum entering 2026.
• M&A surged in 2025, with deal volume more than doubling YOY as pharma companies accelerated acquisition activity to strengthen pipelines.
• In the U.S., investor sentiment constrained VC and IPO activity early in the year before improving meaningfully in the second half. Despite the pickup, companies continue to face a higher bar to raise capital or pursue public offerings.
• Although some 2025 headwinds have eased, investors remain focused on companies with strong clinical results and clear regulatory pathways, reinforcing a selective funding environment.
• Life sciences CRE remains in a reset phase. While improving funding conditions are expected to support the sector over time, elevated vacancy and muted leasing demand are expected to weigh on the pace of recovery.