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Biotech IPO slowdown looms

What else we covered

Other deals of the week

Pipeline picks

Quote of the week

The recent boom in biotech IPOs could face a year-end slowdown as general market challenges weigh on the sector.

Why it matters: Tapping public markets is a key fundraising method for life sciences companies developing new drugs and therapies.

The big picture: Higher interest rates, AI angst and geopolitical tensions are just some of the issues that have contributed to IPO postponements by companies including Oura and Holtec Nuclear.

What they're saying: "The lineup for Q4 is going to be lower than what was originally expected," says William Blair managing director Kevin Eisele. adding that some biotechs are now pushing Q4 IPOs to Q1 2027.

Reality check: Biotech stocks can be less exposed to broader economic conditions because their performance is driven largely by specialist investors.

Yes, but: Stellar performance still depends on generalist institutional funds.

"Those investors certainly do get spooked," Eisele says. "As you lose that bid, the concentration becomes even more pronounced amongst the specialist investors."

1 big thing: Biotech IPO slowdown looms

Illustration of two hands wearing rubber gloves clinking erlenmeyer flasks so hard they are shattering.

Illustration: Brendan Lynch/Axios. Stock: Getty Images

🧫 Novartis signs $7.8 billion drug deal with Chinese startup

This is the latest example of a Western pharma giant partnering with a Chinese biotech — a trend that could presage China rivaling America as the world's top drugmaker.

🇨🇳 China eyes direct competition with Big Pharma

Some experts warn that big drug companies are prioritizing the short-term benefits of partnering with Chinese biotechs over the longer-term risk of China usurping the U.S. as the world's biopharmaceutical superpower.

🏎️ Exclusive: HHS launches project to speed up clinical trials

The program, shared first with Axios, could provide a template for reconfiguring the drug development process and boosting U.S. competitiveness in the global biotech race.

🧬 Sanofi and Regeneron expand alliance in $8B deal

The deal gives the companies new potential assets as they prepare for Dupixent's patent cliff in 2031.

💊 Drug tariffs cast cloud over smaller biotechs

The steep tariffs that took effect on Tuesday pose a threat to small and midsize biotech firms that outsource their manufacturing.

🤑 Novo signs $2.6B obesity drug licensing deal with Hengrui Pharma

It's Novo's latest move to remain relevant in the weight-loss market.

🧪 ai3Bio raises $48M Series A to treat autoimmune diseases

Its approach could help treat the root causes of autoimmune diseases versus just managing symptoms.

🧠 Inside the next frontier for Alzheimer's drugs

Existing Alzheimer's drugs have shown limited benefits and potentially serious side effects.

Novartis signs $7.8 billion drug deal with Chinese startup

China eyes direct competition with Big Pharma

Exclusive: HHS launches project to speed up clinical trials

Sanofi and Regeneron expand alliance in $8B deal

Drug tariffs cast cloud over smaller biotechs

Novo signs $2.6B obesity drug licensing deal with Hengrui Pharma

ai3Bio raises $48M Series A to treat autoimmune diseases

Inside the next frontier for Alzheimer's drugs

2. What else we covered

Animated illustration of a pill with the break line made from a blinking cursor.

Illustration: Aïda Amer/Axios. Stock: Getty Images

Varda Space, an El Segundo, Calif.-based orbital drug manufacturer, raised $251m in a Series D. Lux Capital and Natural Capital led, joined by Founders Fund, Khosla Ventures, Caffeinated Capital, General Catalyst, 8090 Industries, Giant Step and Also Capital. Go deeper

TriGemX Bio, an NYC-based developer of migraine treatments, raised $94m from The Column Group, TCGX, and Viking Global Investors. Go deeper

AnaCardio, a Stockholm-based heart failure biotech, raised €62.5m in Series B funding led by Novo Holdings and the Ljungström family office. Go deeper

Aptadit Therapeutics, an Italian developer of RNA inhibitors for genetic diseases, raised $45m in seed funding. 4BIO Capital led, joined by Extend, CDP Venture Capital, XGEN Venture, and CE-Ventures. Go deeper

Tiny Health, an Austin, Texas-based microbiome testing company, raised a $33m Series B round led by B Capital and joined by Black Opal Ventures, Denver Ventures, Pave Health Ventures, Alumni Ventures, Gaingels, and Pari Passu Ventures, Spero Ventures, The Venture City and Overwater Ventures. Go deeper

Link Cell Therapies, a South SF-based oncology cell therapy startup, raised $30m in additional Series A funding. Johnson & Johnson led, joined by Samsara BioCapital, Sheatree Capital, BMS, Kyowa Kirin, Sherpa Healthcare Partners, Western Technology Investment and the MD Anderson Cancer Focus Fund. Go deeper

Skopos Bio, an Australian cancer biotech, raised A$12m in seed funding from Tenmile, Tin Alley Ventures, and Yosemite. Go deeper

Astrocyte Pharmaceuticals, a Groton, Conn.-based cerebroprotective therapy biotech, raised $9.5m in Series B funding. DeepWork Capital led, joined by MintPharma Capital, Waterstar Capital, Dynagrow Capital, and Angel Star Ventures. Go deeper

Biotia, a New York UTI testing company, raised a $9m Series A. Convergent Ventures, DigitalDx Ventures, Cloquet Capital Partners, Continuum Health Ventures, I-Lab Angels, EGB Capital, Leawood Venture Capital, Red Bear Angels and Red Bear Ventures participated. Go deeper

R1 Therapeutics, a Redwood City, Calif.-based kidney disease biopharma, raised $3m in Series A extension funding from Samsara BioCapital. Go deeper

TJP, a portfolio company of Renovus Capital Partners, acquired Evolution Consulting & Research, a life sciences market research organization. Go deeper

Webster Equity Partners will take injectable drug products maker Lifecore Biomedical private for $663.7m. Go deeper

TCGX Acquisition II, an Asia health care SPAC, filed for a $100m IPO. Go deeper

Audax Private Equity and Linden Capital Partners sold StatLab, a McKinney, Texas-based maker of consumables and reagents for anatomic pathology labs, to Danaher (NYSE: DHR) subsidiary Leica Biosystems. Go deeper

Merck, a Rahway, N.J., pharma giant, will pay $400m upfront and up to $2.1b to Shanghai-based SciBrunch Therapeutics to develop an oral KRAS G12D (ON) inhibitor to treat cancer tumors. Go deeper

Jiangsu Enhua Pharmaceutical, a Chinese CNS pharma company, agreed to pay $10.5m upfront and up to $507m to Somnivera for developing a sleep disorder drug. Go deeper

Andrew Witty, former CEO of GSK and UnitedHealth Group, joined Hatteras Venture Partners as chairman. Hatteras also announced a first close on its second opportunities fund, targeting $100m, and named former National Cancer Institute director Ned Sharpless as head of creation strategies. Go deeper

3. Other deals of the week

Illustration of a handshake between a robot hand and a Trump-style hand. 

💼 Foghorn lays off 40% of employees as Lilly cancer collab collapses over poor data (Fierce Biotech)

💰 AstraZeneca to invest $2 billion in Summit Therapeutics, collaborate on cancer drugs (WSJ)

🗣️ Q&A: Anthropic's life sciences team on its enzyme research, biology lab and a preclinical pipeline (Endpoints News)

4. Pipeline picks

Illustration of a saguaro cactus wearing glasses and reading its phone.

 "What we have to [do in] the United States is not restrict China; we have to outcompete China."

October 03, 2026

1 big thing: Biotech IPO slowdown looms