Healthcare professionals are heading to San Francisco in search of major mergers in 2026.

Healthcare industry insiders and dealmakers are gearing up for the upcoming 43rd annual J.P. Morgan Healthcare Conference in San Francisco with high hopes for a surge in mega-mergers in 2026. Recent years have set the stage for potential mergers that could surpass the impressive figures seen in 2019 and 2021, when the industry witnessed significant tie-ups amounting to nearly half a trillion dollars.

Emboldened by a more lenient approach to antitrust regulations under the Trump administration, major pharmaceutical companies are considering acquisitions and mergers on a scale of up to $30 billion. Favorable industry agreements on tariffs and drug pricing with the White House are also contributing to this optimistic outlook among healthcare dealmakers.

Jeremy Meilman, global co-head of healthcare investment banking at JPMorgan, highlighted the shift in regulatory climate, stating, “Across a number of different industries, we have seen deals get approved in the last year that could have had more regulatory risk in the past. So that has made people dust off the playbook on the art of the possible.”

In stark contrast to the lackluster dealmaking climate of 2024, where biopharma deals exceeding $5 billion were notably absent, a resurgence in activity was observed last year, with several transactions surpassing the $10 billion mark. This renewed vigor in dealmaking signals a potential return to the prominence of transformative mergers and acquisitions within the healthcare sector.

The lead-up to the J.P. Morgan Healthcare Conference typically serves as a precursor to major deals being announced during the event. Recently, Eli Lilly unveiled plans to acquire Ventyx Biosciences for $1.2 billion, setting the stage for further high-profile transactions in the industry. Speculation surrounding a potential acquisition of Revolution Medicines by AbbVie and interest from Merck has triggered a significant increase in the cancer-drug developer’s market value, underlining the anticipation surrounding transformative deals.

CEOs across the industry are actively exploring various scenarios to evaluate the impact of potential mergers on their portfolios. Market dynamics are driving companies to consider mergers of equals and other strategic combinations, albeit with caution, as they navigate the changing regulatory landscape in the lead-up to the 2026 U.S. midterm elections.

The stage is set for productive discussions at the conference, with companies like Alnylam Pharmaceuticals and Insmed Inc attracting investor interest as potential targets. Big pharma players are strategizing on revenue replenishment strategies, especially in the face of impending patent expirations for blockbuster drugs. Meanwhile, the dynamic landscape of the obesity drug market, exemplified by the intense bidding war between Pfizer and Novo for Metsera, underscores the competitive environment driving dealmaking.

With uncertainties around tariffs and drug pricing policies alleviated, industry experts are forecasting a resurgence in biotech M&A activity in 2026. The renewed optimism is tempered by ongoing regulatory concerns, particularly in the areas of oncology, rare diseases, neuroscience, and cardiometabolic health. Despite potential challenges, the healthcare sector remains poised for another year of robust dealmaking following a significant uptick in deal volume in 2025.

As healthcare dealmakers converge in San Francisco for the prestigious conference, the industry remains abuzz with anticipation for transformative mergers and acquisitions that could reshape the healthcare landscape in 2026.