Each week we highlight five things affecting the life sciences industry. Here’s the latest.
UK clinical trials show early signs of recovery
- The New Medicines and Healthcare Products Regulatory Agency data presented at the JP Morgan Healthcare Conference 2026 shows a 9% increase in clinical trial applications, signaling the initial impact of recent reform efforts, reports Pharmaphorum.
- The agency is advancing new regulatory pathways to speed up approvals and simplify lower-risk trials, aiming to cut set-up times and boost confidence among sponsors and international partners.
Joint investment in new AI research lab
- A major pharmaceutical company and a technology company announced they will jointly invest $1 billion over five years to build a San Francisco Bay Area research lab using the technology company’s newest artificial intelligence chips.
- According to Reuters, the new facility will focus on generating data to train biotechnology AI models, reflecting pharma’s increasing reliance on advanced AI for drug design, while the technology company releases updated opensource AI tools aimed at ensuring lab-ready drug synthesis.
Biotech capital fundraising off to a hot start in 2026
- Biotech companies raised a surge of capital, about $4.9 billion, in the first week of January 2026, split between $2.29 billion in private rounds (including 10 $100 million+ raises and a $305 million Series F) and $2.6 billion in public offerings/initial public offering activity, marking one of the strongest fundraising weeks in years, reports Endpoints News
- The funding wave comes ahead of the JP Morgan Healthcare Conference, driven by renewed investor optimism, improving biotech market conditions (IPO reopening, active mergers and acquisitions, rising stock prices), and expectations of continued momentum through 2026.
Major pharmaceutical company to expand in North Carolina
- According to BioSpace, a major pharmaceutical company will add 500 new jobs in North Carolina by building a second manufacturing facility in Wilson, part of its $55 billion U.S. manufacturing and research and development commitment aimed at producing all advanced medicines domestically and gaining tariff relief under its agreement with the current administration.
- The new drug product facility, which will be focused on oncology and neurological treatments, expands the company’s growing presence in the state, alongside its biologic’s campus and a major expansion in Holly Springs, as North Carolina becomes a key hub for re-shored biopharma manufacturing investments from several of the major pharmaceutical companies.
U.S. biotech sector is expected to rebound in 2026
- According to Reuters, the U.S. biotech sector is expected to rebound in 2026, with more companies planning IPOs as investor confidence improves due to lower interest rates, renewed deal‑making and reduced fears around disruptive health care policies.
- Investors are shifting toward biotechs with mid‑ to late‑stage pipelines and strong clinical data, as biotech stocks gained momentum in late 2025 and capital inflows increase, setting the stage for a more active IPO market compared to last year.
For more insights in life sciences, check out RSM’s industry outlook.
