Deal activity in the life sciences sector slowed in 2017 as soaring valuations deterred potential purchasers and licensees and biotech companies had a number of financing options available to them. Indeed, venture capital (VC) interest in biotech increased over the course of 2017 and the IPO market was stronger for companies in biotechnology-related industries than in the previous year. With the Nasdaq Biotechnology Index returning to 2015 levels, the M&A market in 2017 was subdued, with only a small number of big pharma companies signing multibillion-dollar deals. Licensing activity was less constrained, with both the mean upfront payment and mean total deal value for licensing deals increasing from 2016 to 2017. Johnson & Johnson (J&J) was the leading pharmaceutical dealmaker in terms of deal volume, taking the top position from AstraZeneca which fell down the rankings. The UK company’s high-profile partnership with Merck & Co. for the co-development and commercialisation of Lynparza™ (olaparib) for multiple cancer types broke records in 2017 with its US$1.6 B upfront payment. The year also saw Chinese biotech companies out-license coveted immuno-oncology assets in return for significant sums. Oncology remained the leading therapeutic area for partnering deals, although there was an interesting upturn in CNS dealmaking. On average, upfront payments for collaborative R&D alliances fell from 2016 to 2017, although mean deal values increased thanks to a number of broad collaborations laden with biodollars.