Despite a significant downturn in overall deal activity in the life sciences sector, appetite for M&A remained reasonably high in the first half of 2016. Big pharma steered clear of major M&A activity, preferring instead to pursue bolt-on acquisitions and dispose of non-core assets. Mean licensing deal values fell slightly compared to H1 2015, but upfront payments rose, perhaps driven by strong competition for the most attractive assets. AstraZeneca retained its title as the most prolific dealmaker, thanks in major part to a focus on earlystage deals and asset externalisation, although once again Johnson & Johnson was not far behind. Oncology continued to dominate the dealmaking landscape, with the immunooncology field attracting new entrants and seeing deals focused on novel targets. The level of disclosed Collaborative R&D dealmaking fell from H1 2015 to H1 2016, reflecting very focused partnering strategies and broad-based deals spanning multiple targets and/or therapeutic areas.