Pharma giants return to the M&A table: what $38B in biotech exits signals. February 21, 2026 Roughly $38 billion in announced and completed biotech M&A across 2024 and early 2025 marks one of the strongest acquisition cycles since the pre-pandemic boom, even as AI absorbs most of the market's mindshare. While capital continues to chase foundational AI models and infrastructure, large pharmaceutical companies are quietly reasserting themselves as the most reliable source of liquidity for life sciences investors. The contrast is sharp: public enthusiasm has shifted to compute and chips, but strategic buyers in biotech are writing substantial checks for assets that show clinical maturity and clear paths to differentiation. Several transactions underscore the scale and seriousness of this renewed activity. Eli Lilly's $2.4 billion acquisition of Orna demonstrated major pharma's willingness to pay premium valuations for emerging in vivo technology platforms rather than wait for later-stage de-risking. AbbVie reinforced the trend with its $2.1 billion purchase of Capstan, a move that signals continued appetite for next-generation delivery systems capable of supporting pipeline expansion. Both deals highlight a pattern: strategic acquirers are targeting platforms with clinical validation and enough optionality to influence multi-year R&D planning. The most significant transaction in the recent wave came from Johnson & Johnson, which executed a $3.05 billion all-cash acquisition of Halda. The cash-only structure is notable. In an environment where equity markets remain choppy and biotech IPOs are rare, cash consideration provides a clear and immediate exit - precisely what many investors have been waiting for after two years of constrained liquidity. It also reiterates that large pharma balance sheets remain strong and that buyers prefer straightforward transactions without contingent components. These deals are occurring even as the broader financing environment remains uneven. Venture funding share for biotech has declined relative to AI, and public markets have yet to fully reopen for early-stage or mid-cap life sciences companies. But M&A, not IPOs, is currently the mechanism delivering real liquidity. For investors, that distinction matters more than sector-level sentiment. The takeaway is direct: strategic acquirers are active, capital is being deployed, and exits are happening at meaningful valuations. The window is selective, but it is open. For portfolios holding clinical-stage assets or differentiated platforms, the current cycle offers a viable path to liquidity - and one that appears to be strengthening rather than fading. February 21, 2026 VNTR Research Team

Capstan Medical's CEO, Maggie Nixon, discusses the company's work with nitinol in developing mitral heart valve implants and their collaboration with suppliers like Admedes. She highlights the importance of partnerships in manufacturing and shares leadership insights since becoming CEO. Capstan, which emerged from Occam Labs, has grown significantly. Nixon also praises Intuitive Ventures for their continued investment and advises engaging with them at conferences for potential deals.