The life sciences industry enters 2026 with a constructive set of tailwinds, following a second half of 2025 in which dealmaking activity showed clearer signs of normalization after a prolonged slowdown. While risks remain, particularly around geopolitics, trade policy, and regulatory priorities, the overall setup for 2026 is cautiously constructive, with improved visibility into execution pathways for well-positioned assets and platforms.~~Key developments during 2025 that set the stage for the year ahead include:~~At the same time, companies and investors must navigate an active and evolving regulatory environment. Against this backdrop, this report provides an integrated outlook on life sciences deal activity in 2025 and an outlook on 2026 across mergers and acquisitions, capital markets, royalty finance, collaborations and licensing, and regulatory developments, highlighting the trends, opportunities, and uncertainties most likely to define the year ahead.~~Read More~~The following Gibson Dunn lawyers prepared this update: Ryan Murr, Branden Berns, Katlin McKelvie, Melanie Neary, and Karen Spindler.~~Gibson Dunn’s lawyers are available to assist in addressing any questions you may have regarding these issues. Please contact the Gibson Dunn lawyer with whom you usually work, any leader or member of the firm’s Life Sciences practice group, or the authors:~~Ryan Murr – San Francisco (+1 415.393.837, rmurr@gibsondunn.com) Branden Berns – San Francisco (+1 415.393.4631, bberns@gibsondunn.com) Katlin McKelvie – Washington, D.C. (+1 202.955.8526, kmckelvie@gibsondunn.com) Melanie Neary – San Francisco (+1 415.393.8243, mneary@gibsondunn.com) Karen Spindler – San Francisco (+1 415.393.8298, kspindler@gibsondunn.com)~~© 2026 Gibson, Dunn & Crutcher LLP.  All rights reserved.  For contact and other information, please visit us at www.gibsondunn.com. Attorney Advertising: These materials were prepared for general informational purposes only based on information available at the time of publication and are not intended as, do not constitute, and should not be relied upon as, legal advice or a legal opinion on any specific facts or circumstances. Gibson Dunn (and its affiliates, attorneys, and employees) shall not have any liability in connection with any use of these materials.  The sharing of these materials does not establish an attorney-client relationship with the recipient and should not be relied upon as an alternative for advice from qualified counsel.  Please note that facts and circumstances may vary, and prior results do not guarantee a similar outcome.~~Download PDF~~