Biotechnology Sector Outlook and Recent Developments
In every recent gathering of biotechnology executives, investors and business analysts, the prevailing sentiment has been one of increasing optimism as we move into 2026.
Jean-Claude Muller
Post-J.P. Morgan Healthcare Conference Reflections
One month following the conclusion of the 44th J.P. Morgan Healthcare Conference, the sector has witnessed significant activity. Specifically, ten deals between major pharmaceutical firms and biotechnology companies have been identified, each valued at over $1 billion. Notably, two of these transactions have the potential to exceed $10 billion.
- Boston Scientific's acquisition of Penumbra, a Alameda (California) based company, with a comprehensive range of vascular devices and products for stroke revascularisation, involved a deal valued at approximately $14.5 billion.
- AstraZeneca and CSPC Pharmaceutical of Hong Kong, announced a partnership to co-develop up to eight innovative, long-acting peptides targeting weight-management conditions. This agreement includes a $1.2 billion up front payment, $3.5 billion in research and development milestones, and a potential total payout of $18.5 billion, along with royalties linked to global sales.
IPO Activity and Investor Perspectives
For most investors, high-value Initial Public Offerings (IPOs) are of greater significance than major deals, for two primary reasons: first, IPOs accurately measure , at a given time, the value of a company, second, they introduce new liquidity into the financial system.
As of 16 February, six biotechnology companies have successfully completed IPOs on Nasdaq.
- Aktis Oncology (Boston and North Carolina). On 13 January, Aktis Oncology, a targeted radiopharmaceutical company, raised $318 million, far exceeding its initial target of $181 million. This briefly set the record for the highest biotech IPO since 2024.
- Veradermics (New Haven): On 5 February, Veradermics, a biotech focused on dermatology and hair regrowth, announced an upsized IPO of common shares raising roughly $294.8 million. Funds will advance VDPHL01, an oral extended-release formulation of minoxidil - a molecule first synthetised by Upjohn's chemists (US patent 3,461,461, granted in 1965) - for pattern hair loss.
- Eikon Therapeutics (Milbrae, California). On 6 February, Eikon Therapeutics raised $381 million, surpassing expected proceeds of $273.5 million. These funds are earmarked for a large phase 2/3 clinical trial of EIK 1001, an immune modulator tested in combination with Keytruda for the treatment of advanced melanoma and non-small cell lung cancer, and for further advancement of EIK 1003 and EIK 1004, two PARP1 inhibitors licensed from Impact Therapeutics, a Shanghai based biotechnology company.
- SpyGlass Pharma (Aliso Viejo, California): On 9 February, SpyGlass Pharma, specialising in chronic ocular conditions, through long-acting sustained drug delivery of approved medicines such as bimatoprost, closed its IPO with proceeds of $172.5 million.
- Agomab Therapeutics (Antwerp, Belgium): Also on 9 February, Agomab Therapeutics closed its Nasdaq IPO, netting approximately $200 million to develop disease-modifying therapies for immunology and inflammatory diseases, with an initial focus on chronic fibrotic conditions.
- Immunic Therapeutics (New York City): On 13 February, the company announced a private placement raising $200 million upfront, with potential to reach $400 million. The proceeds will support Immunic’s transition from a research-focused organisation to a fully integrated commercial entity, prioritising the completion of phase 3 ENSURE trials in relapsing multiple sclerosis and the initiation of a phase 3 clinical programme in primary progressive multiple sclerosis.
European Market Prospectives
In spite of the recently launched Euronext "IPO ready” programme, with more tha 20 heathcare companies being coached for a future listing, we are not aware of a formal filing from an European biotechnology company.
Why so? The commonly cited explanation is that the US leads in innovation, while Europe tends to regulate. However, the situation is more nuanced.
“We have many ideas, but we struggle to turn them into companies that lead global market.
As John G. Singer notes, "Europe possesses deep capital markets, world-class universities and a highly educated workforce, yet it struggles to produce companies that scale beyond regional success. Once the epicentre of pharmaceutical innovation, Europe’s share of global pharma R&D has declined from 50% in 2000, to a projected 20% in 2030, overshadowed by US and Chinese advances. The challenge is not a lack of talent or resources, but whether the economic system tolerates risk and failure long enough to foster breakthroughs."
Regulatory environments, such as France’s “Principe de Précaution,” further limit the scope for entrepreneurial risk-taking. Mario Draghi succinctly diagnosed Europe’s innovation gap, stating, “We have many ideas, but we struggle to turn them into companies that lead global market.”
Jean-Claude Muller
Venture Capital and Listing Strategies
Atomico, a London-based venture firm, observed that "the main barrier for venture capital deployment in Europe is not a shortage of promising companies, but rather a lack of exits. The issue lies in the scaling ecosystem rather than company creation."
As a result, the most innovative and well-managed European biotechnology companies seek listings on both EuroNext and Nasdaq to maximise their exposure and opportunities for growth.
Paris, February 16, 2026
This document has been prepared by Jean-Claude Muller and is provided for information purposes only. The information contained herein has been obtained from sources believed to be reliable but is not warranted to be accurate or complete. The views presented are those of the author at the time of writing and are subject to change. Jean-Claude Muller has no obligation to update these opinions or the information presented.
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