Each week we highlight five things affecting the life sciences industry. Here’s the latest.
Biotech layoffs ease in Q1
- According to Fierce Biotech, there were 33 layoff rounds reported in the first three months of 2026, which is roughly half the level seen in Q1 2025 and well below the first‑quarter totals from 2023 and 2024. This could signal a continued easing from the peak of industry job cuts.
- The slowdown reflects post‑2024 restructuring and strategic resets as many companies have already made major workforce reductions, though notable cuts and shutdowns persisted (including large pharma restructurings and biotech closures), and uncertainty remains around potential impacts from tariffs and artificial intelligence.
Biopharma M&A surge
- Big pharma unleashed an unusually concentrated mergers and acquisitions increase, with six companies announcing up to $25.5 billion of acquisitions over eight days, highlighted by two $5+ billion deals in a single day as drugmakers move aggressively to strengthen pipelines.
- According to Endpoints News, the deal surge reflects strategic pressure and improving market conditions, as companies seek to offset looming patent cliffs, expand late-stage and early research and development portfolios, and rely more heavily on milestone and contingent value rights-based deal structures amid recovering biotech valuations and limited public market access.
Program selects early-stage life sciences startups to fuel next-gen innovation
- Eleven early-stage life sciences startups were selected for the latest cohorts of the national Drive accelerator program, with eight of the companies having a presence in Massachusetts. The spring program includes two cohorts (biotech and biomarkers/diagnostics) and targets companies that have raised less than $1.5 million in equity funding.
- The free, eight-week accelerator provides industry-led training, mentorship and demo days in Boston and Charleston, aiming to help founders commercialize breakthrough science despite a challenging funding environment. Since launching in 2022, Drive has supported 70 companies (including the new cohorts) that have collectively raised about $290 million, reports BioSpace.
Firm closes record fund to back late-stage drug development
- A major investment firm closed its largest life sciences fund to date, raising $6.3 billion to finance late-stage (Phase III) clinical trials in partnership with pharmaceutical, medtech, and biotech companies. The fund is larger than its 2020 predecessor and targets the significant capital gap in late-stage drug development.
- The strategy focuses on earning milestone payments and royalties from successful products, which will be sold to investors or originator companies. According to Bloomberg, the prior fund generated an 18% net internal rate of return as of year-end 2025, and the life sciences platform managed $15 billion in assets, underscoring the scale and returns of the model.
FDA device center faces challenges amid staffing cuts
- Former U.S. Food and Drug Administration officials and industry advisers say the Center for Devices and Radiological Health (CDRH) is under strain after layoffs and staff departures, leading to heavier workloads, low morale and loss of institutional expertise. Cuts and uncertainty have driven early retirements and exits, reports MedTech Dive.
- Some stakeholders indicate the staffing losses could affect regulatory consistency and communication. While CDRH is still meeting some performance targets, former leaders caution that the long-term impact on device oversight and innovation could be affected.
For more insights in life sciences, check out RSM’s industry outlook.
