Biotech is dominating the (very) early 2026 deals market, whether that be startup fundings, IPOs, or mergers.

• This is a reversal of the usual order, in which biotech plays distant second cousin to the sorts of tech that don't need FDA approval.

State of play: 25 of the 59 venture deal blurbs in Pro Rata so far this year have been for biotech startups, including seven rounds of $100 million or more.

• The only priced IPO was for Aktis Oncology, while two more biotechs filed for IPOs last Friday.
• Eli Lily and Amgen signed large acquisitions, while Merck reportedly is in talks to buy Revolution Medicines for over $32 billion.

Behind the scenes: Part of this is just a calendar quirk, as biotechs like to make news ahead of the annual JPMorgan Healthcare Conference that kicks off today in San Francisco. But there are some other converging forces:

• Investors are getting giddy about how AI could apply to biotech, in terms of both drug discovery and development. We still don't have an AI-designed drug in the market, but there are plenty in the pipeline.
• The Trump administration is viewed as a light-touch regulator, particularly when it comes to certain classes of new drugs, despite long-term concerns about the future of American scientific research.
• The patent cliff is coming for more blockbuster drugs, with both Merck's Keytruda and Bristol Myers Squibb's Eliquis getting to go generic in 2028.
• Biotech stocks had a very strong 2025, with the XBI index more than doubling the S&P 500's performance.

The bottom line: Biotech will eventually take a dealmaking backseat, but won't be a quiet passenger.

💊 If you're at JPM in SF, please join Axios Live tonight at 6pm PT for conversations with Kate Ryder, Maven Clinic founder & CEO, and Vanessa Broadhurst, Johnson & Johnson EVP of global corporate affairs. RSVP here.

Allegiant (Nasdaq: ALGT) has agreed to buy rival discount carrier Sun Country Airlines (Nasdaq: SNCY) for around $1.5 billion in cash and stock.

Why it's the BFD: It would be the first airline antitrust test for Trump 2.0, at a time when some discount carriers are struggling due to rising costs and increased competition from larger rivals.

State of play: The Biden administration blocked JetBlue from buying Spirit Airlines, which later filed for bankruptcy, but did allow Alaska Airlines to buy Hawaiian Airlines.

• Spirit and Frontier Airlines reportedly have rekindled old merger talks.

Zoom in: Sun Country stockholders would receive $4.10 per share in cash and 0.1557 in Allegiant stock, combined representing a 19.8% premium over Friday's closing price.

• The deal is expected to close in the second half of 2026, pending regulatory approvals.
• The combined company would have around 22 million annual customers, serving nearly 175 cities on over 650 routes. Allegiant would keep its Las Vegas headquarters, but pledges to maintain a "significant presence" in Minneapolis-St. Paul.

The bottom line: This tie-up isn't too surprising, given that Sun Country CEO Jude Bricker previously spent a decade with Allegiant.

• Rain, a stablecoin-based payments platform, raised $250m at a $1.95b post-money valuation. Iconiq led, joined by Sapphire Ventures, Dragonfly, Bessemer, Lightspeed, and Galaxy Ventures. axios.link/3Z61PPM

🚑 Orca Bio, a developer of cancer cell therapies, raised $250m in Series F funding led by Lightspeed. axios.link/49edLoI

• Torq, a Portland, Ore.-based no-code automation platform for security teams, raised $140m in Series D funding at a $1.2b post-money valuation. Merlin Ventures led, joined by insiders Evolution Equity Partners, Notable Capital, Bessemer Venture Partners, Insight Ventures Partners, and Greenfield Partners. axios.link/3Z5Fkuj

• Corgi, a provider of commercial insurance to startups, raised $108m from YC, Kindred Ventures, Contrary, Oliver Jung, SV Angel, and Phosphor Capital. axios.link/49uc6tQ

🚑 Vibrant Therapeutics, a developer of masked T-cell engagers for solid tumors, raised $61m from Pfizer Ventures, Apricot Capital, Bayland Capital, HongShan Capital Group, Northern Light Venture Capital, and First Principle Venture. axios.link/4qhfbES

• Zepo Intelligence, a workspace security platform, raised $15m in seed funding from Kibo Ventures, eCapital, and TIN Capital. axios.link/453nXOu

• Nscale, a London-based hyperscaler, is in talks to raise around $2b in Series C funding, per Bloomberg. Last year it raised a $1.1b Series B round led by Aker ASA. axios.link/49hYNy3

The U.S. Defense Department. is investing $150m for a preferred equity stake in Atlantic Alumina Co. (ATALCO), with Pinnacle Asset Management to invest another $300m.

• I Squared Capital ended its pursuit of the core advertising unit of German media group Ströer SE & Co., per Bloomberg. axios.link/4jvQtOt

• Netform, a Torque Capital Group portfolio company, acquired Lavalier (dba Tapemaster, a Troy, Mich.-based provider of precision machining services. axios.link/49wgb0C

• Platinum Equity invested in Norton Packaging, a Hayward, Calif.-based provider of plastic pails and packaging solutions. axios.link/3LmNpI4

🚑 Prescient, a Bridgepoint portfolio company, acquired health-care consultancy Uptake Strategies. axios.link/4puTYWR

• ProMach, a portfolio company of Leonard Green and BDT & MSD Partners, acquired AmHolt, a provider of aftermarket parts and consumables to the food and beverage packaging and processing markets, from Arcline. axios.link/49jKauc

• Ranger Fire and Security, a London-based portfolio company of Hyperion Equity Partners, acquired Dorset, England-based Partnership Fire and Security. axios.link/4aVPOUn

🚑 WindRose Health Investors has invested in Avalon Healthcare Solutions, a Tampa, Fla.-based lab benefit management platform backed by Francisco Partners (which reinvested). axios.link/3Z7JVfz

No companies are expected to go public this week on U.S. exchanges.

• BitGo, a Palo Alto, Calif.-based digital asset custody and lending platform, set IPO terms to 11.8m shares at $15-$17. It would have a $2b fully diluted value, were it to price in the middle, and plans to list on the NYSE (BTGO). Backers include Redpoint Ventures, Valor Equity Partners, David Sacks' Craft Ventures, and Bridgescale. axios.link/4qSe3HV

• Bob's Discount Furniture, a retailer owned by Bain Capital, filed for an IPO that Renaissance Capital estimates could raise $400m. It reports $86m of profit on $1.7b in revenue for the first nine months of 2025, and plans to list on the (NYSE) BOBS). axios.link/49NgSnC

🚑 Eikon Therapeutics, a Millbrae, Calif.-based live-cell microscopy startup, filed for an IPO that Renaissance Capital estimates could raise $300m. The pre-revenue company plans to list on the Nasdaq (EIKN) and raised over $1b from firms like Lux Capital (17.3% pre-IPO stake), Foresite Capital (12.4%), Column Group (12.6%), Innovation Endeavors (9.4%), Soros Capital, and General Catalyst. axios.link/4qatMC0

⚡ Forgent Power Solutions, a Dayton, Minn.-based maker of electrical distribution equipment for data centers and industrial facilities, filed for an IPO that Renaissance Capital estimates could raise $300m. The company is owned by Neos Partners, reports $17m of net income on $753m in revenue for the fiscal year ending last June 30, and plans to list on the NYSE (FPS). axios.link/49vhJbf

⚡ Innio, an Australian power equipment maker owned by Advent International, picked banks for its U.S. IPO, per Bloomberg. axios.link/4jxItwD

🚑 Veradermics, a New Haven, Conn.-based hair-loss biotech, filed for a $100m IPO. The pre-revenue company plans to list on ther NYSE (MANE) and raised around $260m from SR One, Longitude Capital, Viking Global, J.W. Childs, Marshall Wace, Invus, Columbia Threadneedle, Infinitium, and LifeSci Venture Partners. axios.link/3Ndo5oq

🚑 A federal judge ruled in favor of the FTC, which last August sued to block Edwards Lifesciences (NYSE: EW) from acquiring JenaValve, an Irvine, Calif.-based maker of transcatheter aortic valve replacement systems, for $945m.

• JenaValve has raised over $500m in VC funding from firms like Bain Capital Life Sciences, Rosetta Capital, Pictet, QIA, Innovatus Capital Partners, Peijia Medical, and insiders Andera Partners, Valiance Advisors, Gimv, Cormorant Asset Management, RMM, and Venture Incubator.

• CapMan agreed to sell Forenom Group, a provider of serviced apartments in the Nordics, to a consortium that includes tech services group Bravedo. axios.link/4qNFl1S

• Global Payments (NYSE: GPN) completed its $24b purchase of Worldpay from FIS (NYSE: FIS) and GTCR. axios.link/4pB6Af4

• Jacobs Capital is seeking to sell Swiss outdoor gear maker Mammut for more than €500m, per Bloomberg. axios.link/49sFoJu

⚡ NextEra Energy (NYSE: NEE) completed its purchase of natural gas retail platform Symmetry Energy Solutions from Energy Capital Partners. axios.link/4pXozgy

• Compass (NYSE: COMP) completed its acquisition of Anywhere Real Estate (NYSE: HOUS), whose brands include Century 21 and Coldwell Banker, with DOJ allowing the deal to go forward after reportedly overruling its own antitrust staff. axios.link/49etNij

🏀 The NBA plans to pitch investors on a European league with initial team valuation of up to $1b, per Bloomberg. axios.link/4qQJF0t

• Apheon, a Luxembourg-based PE firm, raised €1.25b for its sixth flagship fund, per Bloomberg. axios.link/4qPqap8

🚑 Arkin Capital of Israel raised $100m for its third biotech VC fund, per Axios Pro. axios.link/4sx5YtT

• Bansk Group raised $1.45b for its second consumer-focused PE fund. axios.link/45Auhgs

• Company Ventures of NYC is raising up to $80m for its third fund, per an SEC filing.

• Hopu Investments, an Asia-focused PE firm, is targeting $2b for its latest flagship fund. axios.link/49PYXNa

• Onex Partners raised $1.6b for a continuation vehicle that will include portfolio companies PowerSchool, Segdwick, and Fidelity Building Services Group, per Bloomberg. Backers include Neuberger Berman, Apollo, GIC, and StepStone Group. axios.link/3YRiAyp

• Parthenon Capital Partners is raising a $1.7b single-asset continuation fund for Kroll Bond Rating Agency, per Bloomberg. axios.link/3LC3UQx

• Rosberg Ventures, a Monaco-based firm founded by ex-Formula 1 champ Nico Rosberg, raised $100m for its third fund. axios.link/3LGPf6z

🚑 John DiGiovanni joined Inflexion as head of healthcare. He previously was with Arsenal Capital Partners. axios.link/4sst58G

• Ryan Stork is stepping down as a partner and COO at KKR. axios.link/45HPiFV