Good day. Gilead Sciences’ agreement to buy biotech startup Tubulis continues a dealmaking run that puts 2026 on track to be another giant year for biotechnology mergers and acquisitions.

Gilead on Tuesday said it would purchase Tubulis, a venture-backed cancer-drug developer, for $3.15 billion up front. Just last month, the Foster City, Calif.-based biopharmaceutical company said it would buy Ouro Medicines, a venture-funded developer of treatments for autoimmune diseases, for about $1.68 billion up front.

All told, there were 20 biotech M&A deals last quarter for about $50 billion in total value, according to investment bank William Blair. On an annualized basis, that would lead to $200 billion worth of dealmaking for 2026, well above the $147 billion total of 2025, according to the firm.

Drugmakers’ ongoing need for new medicines is one reason for the surge, but Kevin Eisele, managing director, equity capital markets for William Blair, sees other trends lining up as well.

Several smaller biotechs have advanced drugs into late-stage clinical trials or on to the market, making them good candidates for acquisitions, he said. The biotech industry also is recovering from its postpandemic slump, with stocks shooting up over the past year and more startups going public.

Growing stability in the industry makes it easier for buyers and sellers to agree on valuations.

Moreover, several large pharmaceutical companies have set their priorities for markets they want to target, such as obesity or inflammatory diseases, and are using M&A to build their franchises in them, he said.

“Strategic clarity has improved for a lot of acquirers,” Eisele added.

And now on to the news...

Fertility focus. As sperm health becomes a cultural fixation, wellness brands are fueling the demand by swarming the market with products such as male-fertility supplements and sperm-testing kits.

• On social media, companies like Bird&Be, FullWell and Needed are promoting fertility bundles and supplements for him and her to support sperm and egg health.
   
• SwimClub, a new male fertility-supplement company, markets to both men and women. “You can’t out-ovulate bad sperm,” reads one ad. “Don’t leave conception to chance,” reads another.
   
• Venture capitalists poured $121 million in funding into startups focused on male fertility last year, according to data from PitchBook.

Gilead Sciences agreed to buy German biotechnology company Tubulis for $3.15 billion to expand its portfolio of a cancer technology that aims to better guide chemotherapies to tumors. Tubulis’s lead drug is a targeted cancer therapy known as an antibody-drug conjugate. It is in midstage trials for ovarian and lung cancers. The German company has another antibody-drug conjugate in earlier stages of development that is being tested across several tumor types. The deal, announced Tuesday, is expected to close by the end of June and includes up to $1.85 billion in potential milestone payments. Gilead already had a two-year research partnership, signed in 2024, with Tubulis.

A federal appeals court on Wednesday denied Anthropic’s request for relief from the Defense Department declaring the company a supply-chain risk, complicating the legal battle between the U.S. government and one of the country’s leading artificial-intelligence companies. While Anthropic has sustained financial harm from the Pentagon’s actions, the appeals court said that it didn’t feel strongly enough to override the government on a matter of national security. A separate court in California recently granted Anthropic a preliminary injunction to stop President Trump’s broader ban on all federal agencies using the company’s Claude models.

People

David Cheng was named general partner at Costanoa Ventures, where he will focus on AI applications, fintech and healthcare. Cheng was previously at DCM and co-founded Coreline Ventures.

Healthcare-focused venture studio Aegis Ventures appointed Bunny Ellerin as chief ecosystem officer. She was most recently co-founder and chief executive officer of Digital Health New York.

Sidewinder Therapeutics, a San Diego-headquartered biopharmaceutical startup developing antibody-drug conjugates for the treatment of cancer, closed a $137 million Series B round from investors including Novartis Venture Fund and DCVC Bio.

Stipple Bio, a Cambridge, Mass.-based precision oncology drug discovery and development startup, closed a $100 million Series A round co-led by RA Capital, a16z Bio+Health and Nextech Invest. RA Capital’s Derek DiRocco and Nextech Invest’s Thilo Schroeder will join the company’s board.

Endovascular Engineering, a Menlo Park, Calif.-based startup developing a treatment for pulmonary embolism, landed $80 million in Series C funding. Gilde Healthcare and Norwest co-led the round, which included participation from Santé Ventures, 415 Capital, S3 Ventures and others. Geoff Pardo and Zack Scott, general partners at Gilde Healthcare and Norwest, respectively, will join the board.

Latent, a medication access platform, scored $80 million in Series A funding from investors including Transformation Capital.

Route 92 Medical, a West Jordan, Utah-headquartered medical technology company focused on improving outcomes for patients undergoing neurovascular intervention, secured $50 million in growth financing from investors including Sectoral Asset Management, Novo Holdings, U.S. Venture Partners and Norwest.

Yuzu Health, a New York-based health insurance plan infrastructure provider, snagged $35 million in Series A funding co-led by General Catalyst and Chemistry. Alex Tran, managing director at General Catalyst, will join the board.

Beacon Biosignals, a Boston-based neurotechnology startup, added $11 million in new Series B funding from investors including JSL Health and Palo Santo, bringing the round total to over $97 million.

SimpliFed, a startup providing virtual breastfeeding and baby feeding support for new parents, nabbed $10.8 million in Series A funding led by Morningside and Hesperia Capital. Michael Papile, co-founder of Hesperia Capital, joined the board.

Incyclix Bio, a Research Triangle Park, N.C.-based startup developing a treatment for advanced and metastatic breast and ovarian cancer, added $5 million in Series B funding, bringing the round total to $46.5 million. Hatteras Venture Partners provided the latest tranche, with Partner Kseniya Simpson joining the Incyclix Bio board.

• Genes May Predict How Much You’ll Lose on a Weight-Loss Drug
   
• Weight Loss Drug Frenzy: What’s Here and What’s Likely Coming Next
   
• Medicare Insurer Payments to Rise 2.48% in 2027, Causing Stocks to Surge
   
• Why the U.S. Spends So Much on Healthcare
   
• Why the U.S. Fertility Rate Has Hit a Record Low

• Do one thing every day that scares you (Life Sci VC)
   
• Smart contact lens monitors eye pressure and delivers glaucoma drugs in early tests (STAT)
   
• Patients are using chatbots to fight medical bills, with mixed results (New York Times)
   
• Terns rebuffed a higher bid before selling to Merck

This newsletter was compiled by Zachary Cole and Brian Gormley. 

Share your tips, comments and questions: vcnews@wsj.com

The team: Matthew Strozier, Yuliya Chernova, and Brian Gormley.

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