More Optimism Among Attendees at 18th Biotech Showcase

Marie Daghlian

Attendees at the annual Biotech Showcase and JP Morgan Healthcare conferences expressed optimism for 2026, mirroring the sunny weather in San Francisco and buoyed by rising biotech stock prices and biopharma M&A and partnering coming into the new year.

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Amid traffic and noise, thousands descended on San Francisco’s Union Square for potential investment and partnering meetings, networking, catching up with colleagues, and checking out the latest advances in biotechnology. Biotech Showcase counted more than 2700 registered participants and the lobby of the Hilton Hotel was soon jammed with the noise of activity.

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China was one of the hottest topics of conversation, with its growing ability to validate targets and fast early stage clinical trial enrollment. At a panel on Dealmakers’ Intentions, Neel Patel, head of NewCo Business Development at Flagship Ventures, noted that 2025 was a breakout year for Chinese innovation, speed of development, and enrolling clinical trials that are backed by significant capital – leading to a quicker path to an NDA.

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AI was also the subject on several panels, including one on longevity and healthspan, as companies begin to understand the workings of AI technology and where it can best increase productivity and eventually ROI.

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And a packed audience listened to a Showcase panel on investing in Women’s health and the opportunities in the space.

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While deal flow was unexpectedly muted on the opening day of the week, predictions abounded that this would be a stronger and more positive year for the industry, which has been slowly rebounding since a low point in April 2025.

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Thirty two M&A deals totaling $46 billion were signed in the 4th quarter of 2025 for the busiest quarter since Q4 2020, according to the Dealforma financing and deals database.

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Q4 2025 also saw an upswing in licensing deals and a rise in upfront payments, as large biotechs and pharmaceutical companies looked to shore up pipelines.

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Private and venture financing was also strong in the last quarter even though it was down for the year. There are also signs that the dormant IPO market is waking up with two biotechs completing IPOs ahead of the conferences.

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“There’s a lot of optimism for the year ahead,” says Ian Stone, CEO of LifeSci Communications, which represents many small and mid-size companies. “The recent string of activity and dealmaking, including the largest one day capital raise for public biotechs last week, is encouraging to companies and signaling that they will have the resources to get things done in the new year.

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The optimism is grounded on what Endpoints News called a “Foundational Reset” – after two years of companies tightening their belts, making tough decisions about pipelines and staffing. Public and private investors on the panels at Biotech Showcase see this discipline as a positive step for moving ahead. They emphasized the importance of good science, good management, and differentiation as hallmarks of what they are looking for when investing.

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Many attendees agreed that all the pieces are clicking but they are still wary of getting too exuberant or reckless and are consciencely thinking their resources. “After going through a tough time, and you are going to be abundant again, you are going to be mindful of how you spend it,” said Stone. “The biotech industry is coming back in a healthy way.”