Key Takeaways from Jefferies London Healthcare Conference 2025

From November 19th, a group of leading executives and investors at Jefferies Healthcare Conference in London discussed strategies for navigating the current biopharma landscape, marked by regulatory changes, renewed mega deals, and persistent uncertainty.

Speakers:

Moderator: Raj Banerjee, Partner, Ropes & Gray

Panelists:

• Christopher Church, Head of Technology Search and Evaluation BD&L at AstraZeneca
• Marianne De Backer, M.Sc., Ph.D., MBA, CEO and Director at Vir Biotechnology
• Jeffrey Low, MD, Partner at Averin
• Akira Matsuno, Co-Founder, President, CFO, COO at Tune Therapeutics

A group of leading executives and investors at Jefferies Healthcare Conference in London discussed strategies for navigating the current biopharma landscape, marked by regulatory changes, renewed mega deals, and persistent uncertainty.

1. Navigating Regulatory and Market Shifts

• The Inflation Reduction Act (IRA) and Most Favored Nation (MFN) pricing rules are driving immediate and strategic decision-making, especially for small and mid-cap companies.
• Tariffs and U.S. price-setting mechanisms are impacting how companies’ price and launch products, requiring careful planning and adaptation.
• Companies must front-load development and commercialization efforts to maximize value before regulatory clocks start ticking.

2. Financing and Deal-Making in a Challenging Environment

• The biotech sector is emerging from a "winter" of limited activity, with signs of increased deal-making and positive momentum.
• Financing remains tough, but investors are focusing on clinical-stage programs and demanding clear paths to exits and distributions.
• There is a renewed emphasis on investing in both consensus and non-consensus science, with the understanding that today’s innovations will drive future breakthroughs.

3. Strategic Decision-Making: Buy, Sell, or Partner?

• Companies are reassessing their core capabilities and pipelines, making rapid decisions to build or pivot based on market needs.
• Successful deal-making often involves acquiring pre-clinical assets and integrating new teams to accelerate growth and transformation.
• Flexibility in deal structures is crucial, as initial research collaborations can evolve into larger equity investments or strategic partnerships.

4. Leveraging AI and Technology

• AI is now a mainstay in drug discovery and deal evaluation, used for optimizing processes, identifying targets, and designing molecules.
• AI accelerates time-to-market, improves efficiency, and helps manage the complexity of large data sets and regulatory filings.
• Investors and operators are increasingly focused on how AI can create and capture value, with China highlighted as a hub of innovation and rapid development.

5. Investor Perspectives and Ecosystem Support

• Clinical data remains a critical focus for investors, with execution and potential needing to be coupled for successful fundraising.
• The ecosystem’s ability to support transformative technologies is under scrutiny, especially for early-stage and private companies.
• Large financing rounds are possible when companies demonstrate differentiated data and clear value propositions in areas with unmet medical needs.

6. Looking Ahead: Future Trends

• Anticipation of a resurgence in large M&A deals, IPOs, and increased investment activity as the sector recovers.
• Continued investment in non-consensus science is expected to seed the next generation of biopharma companies.
• China will remain a significant source of deal flow and innovation.
• The industry is optimistic about exiting the biotech winter, with value creation and differentiation as key drivers for future success.

Biopharma leaders are meeting the moment by adapting to regulatory changes, leveraging technology, and making strategic investments. Flexibility, innovation, and a focus on execution are essential for navigating uncertainty and capturing opportunities in today’s dynamic environment.