Calla Lily Clinical Care Ltd.’s strategic collaboration with Merck KGaA to support the development of Callavid, its intravaginal drug delivery platform, is a “huge validation” of the work the company is doing, Lara Zibners, co-founder and chairman of Calla Lily, told BioWorld.

Biopharma dealmaking continued its momentum into 2026, with January logging $31.16 billion in total value. That figure outpaced January 2025’s $28.63 billion and exceeded the 2025 monthly average of $24.38 billion. In addition, January 2026 ranks as the highest first month in the past eight years.

Global investors in med tech are confident about exit opportunities in the year ahead. The strategics have already started making acquisitions, the IPO window – which reopened last year – is expected to remain active, and the investment firms have companies in their portfolios that are well-positioned for exit. With fundamentals in the sector still robust, 2026 is expected to reward companies that deliver clear clinical value.

As its GLP-1 rival goes after compounders, Eli Lilly and Co. started the week with news beyond its diabetes and obesity franchise. The company, which disclosed a new agreement with Innovent Biologics Ltd., followed up a short time later with plans to acquire Orna Therapeutics Inc., marking its latest foray in the in vivo therapy space.

The scale of the $8.5 billion deal signed between Innovent Biologics Inc. and Eli Lilly and Co. is eye-catching, but the structure is the real signal. By shifting phase II oncology development to China while reserving global rights ex-greater China, the partners are testing a model that could reshape how multinational drugmakers source innovation as well as how Chinese biotechs create value.

Lixa Pty Ltd. has formed a partnership with the Global Antibiotic Research & Development Partnership and announced a AU$28 million (US$20 million) series B round to take Neox-121 to the clinic to fight antimicrobial resistance.

Medtronic plc is continuing to put its money where its mouth is as it plans to exercise its option to acquire Cathworks Ltd. for up to $585 million. The company said last month it was committed to expanding its pipeline through strategic investments and targeted acquisitions. The move for Cathworks comes on the heels of Medtronic’s $90 million investment in Anteris Technologies Global Corp.

Genentech Inc. is paying $200 million up front and up to $1.5 billion in milestone payments to license one of Suzhou Sanegene Bio Inc.’s RNAi programs. Metabolic and autoimmune-focused Sanegene did not disclose specifics around the licensed candidate, except that it was derived from its LEAD (Ligand and Enhancer Assisted Delivery) platform.