Key Highlights from J P Morgan Q3 2025 Medtech Licensing and Venture Report

The J.P. Morgan Q3 2025 Medtech Licensing and Venture Report highlighted several key trends in the medical technology sector:

1. M&A Activity was Strong:

Deal Value and Volume Increased: Medtech M&A activity increased through Q3 2025, surpassing the total figures for full-year 2024.

Q3 Results: 65 M&A deals were announced in Q3 2025, totaling $21.7 billion in upfront cash and equity.

2. Venture Investment Weakened in the Quarter:

Q3 Funding Down: Venture investment, while starting the year strong, weakened in the third quarter.

$2.9 billionwas invested across 67 rounds in Q3 2025, which was slightly down compared to Q3 2024 ($3.1 billion).

Year-to-Date Total: The 2025 year-to-date venture total reached $9.5 billion across 259 rounds.

Focus on Late-Stage: Early-stage rounds (Seed and Series A) continued to lag, with Series B+ rounds accounting for the vast majority of investment at $7.9 billion year-to-date.

Mega-Rounds: Q3 continued the trend of large funding rounds, with 26 rounds of $100 million or greater year-to-date.

3. IPO Market Showed Improvement:

Q3 Offerings: Four medtech IPOs raised $568 million on NASDAQ and NYSE in Q3 2025.
Year-to-Date Capital: The 2025 year-to-date IPO volume reached $1.5 billion across seven offerings.

4. Licensing Deals Had a Small Upfront Share:

Total Value Up: 21 licensing partnership deals were announced in Q3 2025, with a total deal value of $7.9 billion.

Low Upfront Share: However, only $126 million of that was committed in upfront payments. The year-to-date upfront share of total deal value stood at 4%, which is tied for the second-smallest upfront share in nearly a decade, suggesting a cautious approach to R&D partnership economics.