This is the year that biotech’s confidence returned. Conversations at two of 2026’s biggest biotech conferences, DIA China in Shanghai and BIO International Convention in San Diego, were more optimistic than for several years. The confidence is not misplaced. Deal-making reports show this year’s first quarter had the highest number of deals since 2023 and almost double those of the same period last year.¹ Moving closer to 2030’s patent cliff, large pharma companies are expanding their portfolios through partnerships and outlicensing deals. Biotechs can maximise these opportunities by ensuring that they are investor ready. In this article I’ll share some of my key takeaways from both conferences and suggest ways to be ready to seize the moment.

China’s success and the three Fs

While many biotech markets have faced particularly challenging years, by contrast China has been a success story. The reasons are well documented: long term government planning, a highly productive workforce and well developed infrastructure. At a DIA event Shanghai’s deputy mayor spoke about Chinese biotech’s three Fs. Biotechs aim to be first in China, first in human and first in class. The country is living up to those three Fs: mainland China contributes 23% of the global pipeline for innovative drugs² and matches the US for clinical trials by volume³. Chinese assets are estimated to account for more than two thirds of total deal values in 2026, an increase from 50% last year and under 5% just five years ago.¹ Despite the uncertainty of US policy changes and tariffs, the FDA continues to be the route of choice for the majority of Chinese and APAC-originating treatments. However, with hawkish US policymakers proposing further Chinese biotech restrictions, some may explore the European Medicines Agency (EMA) as an alternate route.⁴

AI in biotech: From futuristic hype to everyday reality

One of the biggest deals announced at BIO was an R&D partnership between AI-driven drug discovery company Insilico Medicine and SK Biopharmaceuticals with a potential value of $2.5 billion. Until recently AI featured prominently in biotech fundraising and venture capitalists (VC) discussions. Today we’re moving beyond the hype cycle to a more grounded reality where AI is normalised as part of drug discovery. While investors always exercised due diligence, nowadays they are less prone to some of the AI fanfare of its early days. Funders recognise that AI only delivers true value when matched by human oversight and experience. Biotechs that implement AI judiciously and with rigorous oversight reap the benefits of saving resources and more productive drug discovery processes.

Therapeutic areas of interest

ICON’s 2025 biotech survey found that oncology treatments in survey respondents’ pipelines decreased from 42% in 2023 to 30% in 2025.⁵ Differentiation is a challenge and oncology clinical trials generally run for longer before the market ascribes a value, often reaching phase 2b or 3. However, oncology treatments with novel mechanisms or combinations maintain investor appeal. Meanwhile, immunology/immunotherapy, cardiometabolic and neurology treatments continue to generate interest. GLP1s also remain attractive, particularly with the development of new, less invasive delivery methods. With the evidence of GLP1 drugs’ success in treating diabetes and obesity, drug developers are researching their applicability to other metabolic diseases.

The 3Gs of investor-readiness

China has the three Fs, but at ICON Biotech, we believe in the three Gs: great science, great data and great partnerships. Great science backed by great data is what matters most to investors and what should matter most to successful biotechs. ICON Biotech has experience across a range of therapeutic areas beyond those already mentioned. Our biotech-dedicated professionals understand the pressures and priorities of biotech, collaborating to deliver results at every development stage. Our Venture Capital Alliances team have a deep understanding of the biotech assets that secure funding. Acting as a Limited Partner with select venture funds, they support clinical strategy with insights into evolving investor priorities, funding environments and early stage development expectations. ICON’s regulatory expertise and site and patient networks span the globe, enabling biotechs to secure authorisations in new regions.

Having spent over two decades of my career in pharma and biotech, the sector’s resilience and optimism is no surprise. These traits carry many organisations through challenging times but only when paired with strategic, practical supports. As funding activity increases, biotechs with strong data and differentiated science and are poised for growth. Partnering with a global biotech CRO ensures they can overcome any challenge and seize every opportunity.

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References

1. Akker RVd. Biopharma deals boom as major players strike multiple $1B+ deals. New York, USA: PwC; 17 June 2026.
2. A Decade of Innovation, a Decade to Come. London, UK: Clarivate; November 2024.
3. Badarch M. By The Numbers: Phase III Trials In China Skyrocket While Phase I Falls To Earth. In Vivo: Citeline Commercial. 2025. https://insights.citeline.com/in-vivo/market-intelligence/by-the-numbers-phase-iii-trials-in-china-skyrocket-while-phase-i-falls-to-earth-QR6ZT2YLXRELTMULOMCI6Y7E24/. Published 14 August. Accessed 14 August.
4. Zhong Y, Bell G, Ogawa C, Mizuno H. From here to where? Plotting a course to bring APAC-developed drugs to the world. Dublin, Ireland: ICON Biotech; 2026.
5. 2025 Global biotech sector survey: How ambiguity is shaping biotech ambition. Dublin, Ireland: ICON Biotech; 2025.