Biotech M&A Surge Delivers $38B in Startup Exits: Eli Lilly, J&J Lead Mega-Deals in 2024-2026

Biotech startups are powering through with robust mergers and acquisitions, generating over $38 billion in exits for venture-backed companies across 2024 and 2025.

These two years mark some of the strongest periods for biotech M&A on record, rebounding from recent lows while trailing the 2021 peak.

Billion-Dollar Deals Reshaping Biotech Landscape

Since last year, at least nine funded U.S. biotech firms have secured transactions valued at $1 billion or more, including milestone payments.

Johnson & Johnson acquired Halda Therapeutics, a developer of targeted therapies for solid tumors, for $3.05 billion in cash late last year.

This month, Eli Lilly agreed to purchase Orna Therapeutics, known for engineering immune cells in vivo, for up to $2.4 billion.

AbbVie bought Capstan Therapeutics, focused on in vivo RNA therapies for autoimmune diseases, for up to $2.1 billion in mid-2025.

Funding Challenges Amid Exit Stability

Biotech captured less than 9% of U.S. startup funding in 2025, totaling just over $25 billion and flat year-over-year, as capital shifted to AI.

IPO activity stayed low with 21 biotechs debuting in 2025—the fewest in years—and four so far in 2026, including Eikon Therapeutics valued at around $900 million.

These M&A wins deliver crucial liquidity to investors and validate cutting-edge innovations in oncology and autoimmune treatments.

Historically, biotech has weathered boom-bust cycles, with current steady exits signaling recovery and long-term potential.

Looking ahead, brisk big-pharma activity like 2026's early deals could spur more high-value outcomes and rebuild sector momentum.