Biopharma Leaders M&A Didn’t Deliver as Expected in 2024: Biopharma Turns to JPMorgan Healthcare Conference for Optimism
Biopharma Leaders the much-anticipated mergers and acquisitions (M&A) wave that the biopharma industry hoped would materialize in 2024 did not arrive as expected, leaving executives and investors feeling disappointed as they approach the 2025 J.P. Morgan Healthcare Conference next week. Biopharma Leaders Despite cautious optimism at the beginning of 2024, the sector remained mired in the post-pandemic downturn, and executives are now entering the conference with a more pessimistic outlook.
“Biopharma Leaders Sentiment is really bad in general in biotech,” Daphne Zohar, CEO of Seaport Therapeutics, told BioSpace in a candid assessment of the current mood in the biopharma industry.
However, Biopharma Leaders even as executives express concern, there is still a glimmer of hope that significant transactions or positive developments could spark a renewed sense of optimism. The annual J.P. Morgan Healthcare Conference, which takes place in San Francisco beginning on Monday, January 13, is one of the largest and most influential gatherings in the biopharma sector, attracting thousands of executives, investors, and industry leaders. The event serves as a barometer for the year ahead, and many executives believe that high-profile M&A deals could significantly improve market sentiment.
Still, there’s a sense of urgency. Biopharma Leaders Zohar pointed out that if there is no substantial M&A activity by Tuesday of the conference, the industry may fall into a more negative sentiment. “If we don’t see a lot of M&A between now and, like, the Tuesday of J.P. Morgan, I think we’ll have kind of negative sentiment,” Zohar remarked. “I always feel like, by Monday, if you’re not seeing a lot, then people begin to assume that there’s not much that’s going to happen.”
Biopharma Leaders Linda Marbán, CEO of Capricor Therapeutics, a biotech focused on cell and exosome-based therapies, acknowledged the ongoing challenges but maintained that a sense of cautious optimism still lingers. She noted in an email to BioSpace, “While challenges like clinical failures remind us of the complexity of developing transformative therapies, they also reinforce the importance of innovation and persistence. I think everyone is eager to see what opportunities JPM will bring.”
2024: A Year of Clinical Setbacks and Limited Big Deals
As 2024 came to a close, the biopharma sector faced a series of high-profile clinical failures, Biopharma Leaders which cast a shadow over the industry’s outlook. These setbacks included Roche’s Parkinson’s drug in collaboration with Prothena, Novartis’ disappointing results with a UCB asset, and Galectin’s disappointing data for its treatment of metabolic dysfunction-associated steatohepatitis (MASH). Even the much-anticipated results from Neumora Therapeutics, which began 2025 with a Phase III failure in its major depressive disorder candidate, did little to uplift the mood.
The disappointing clinical outcomes were compounded by a broader trend of cost-cutting and downsizing across the sector. Biopharma Leaders Even positive news was unable to provide much of a boost in stock prices. Zohar noted that, in many cases, companies that reported favorable clinical results did not see their stock prices reflect this optimism, adding to the sense of frustration among investors.
The past year did witness some notable deals, but they were limited in number and scale. Among the few high-profile transactions was Bristol Myers Squibb’s $14 billion acquisition of Karuna Therapeutics, a neuroscience-focused biotech, which helped the company’s schizophrenia treatment gain FDA approval in September 2024. However, other deals, like AbbVie’s buyout of Cerevel Therapeutics, proved less successful. Cerevel’s lead asset failed in two Phase II schizophrenia trials in November 2024, leaving AbbVie hoping for better luck with other aspects of the acquisition.
Biopharma Leaders Overall, the volume of M&A deals in 2024 remained relatively modest, with most transactions staying below the $5 billion mark. The one exception was Novo Holdings’ $16.5 billion acquisition of Catalent, a contract development and manufacturing organization (CDMO).
Looking ahead to 2025, Biopharma Leaders many in the industry are hoping that the J.P. Morgan Healthcare Conference could provide a boost in the form of larger, more impactful transactions. While some are optimistic that a major acquisition could spark a recovery in sentiment, others believe that positive regulatory news, favorable clinical data, or strategic partnerships could also play a key role in shifting the industry’s mood.
Executive Outlooks: What Biopharma Leaders Want
As Biopharma Leaders executives head to the J.P. Morgan conference, many have set ambitious goals for the event. Alexander Gebauer, Executive Chairman and co-founder of Galimedix Therapeutics, a company focused on small-molecule drugs for eye and brain diseases, is looking to raise a crossover round in preparation for an initial public offering (IPO) in 2026. Gebauer acknowledged the tough conditions, noting that investors have become more selective. However, he expressed confidence in his company’s prospects, saying, “I believe that quality will prevail; companies with excellent teams and high-quality programs should be able to get the support they require.”
Zevra Therapeutics, led by CEO Neil MacFarlane, is also gearing up for M&A discussions at the conference. MacFarlane has overseen several acquisitions in the past and is looking to meet with companies that may have single assets in need of a larger partner. Additionally, Zevra is seeking collaborations for its idiopathic hypersomnia program. MacFarlane emphasized that the conference would be a crucial opportunity for his company to explore new avenues for growth.
Thijs Spoor, CEO of Perspective Therapeutics, a radiopharmaceutical biotech, enters the meeting in a strong financial position after raising $250 million in 2024. As a result, Perspective is not seeking additional investment but is focused on expanding its network and updating stakeholders on its progress. Spoor noted, “I usually go into J.P. Morgan with three buckets of requests: one is people that want money from us—and I’m not doing really any of those for this go-around—and then there’s people that I want money from, and then there’s people that I want to do a deal with.”
Seaport Therapeutics, a new player in the industry, will be attending the conference for the first time in the private company track. Zohar and her team will focus on connecting with investors, pharma companies, and industry peers, while also taking the opportunity to engage with former colleagues.
The Political Landscape and Its Impact on Biopharma
A key factor influencing the biopharma industry’s outlook is the political landscape, particularly the upcoming U.S. presidential transition. With Donald Trump set to return to the presidency on January 20, just after the J.P. Morgan Healthcare Conference concludes, executives are closely watching how this change may affect the industry. Both Zohar and Gebauer noted that the uncertainty surrounding the new administration has had a dampening effect on deal activity.
Gebauer remarked, “The sooner stability can be achieved, the more openness [we’ll see] to invest.” Zohar echoed this sentiment, acknowledging that the industry is in a holding pattern until there is more clarity on the policy front.
On a more optimistic note, Immunic Therapeutics’ Chief Operating Officer, Jason Tardio, suggested that the macroeconomic environment may be primed for deal activity in 2025. With interest rates declining and the cost of capital coming down, Tardio believes that the conditions are right for significant M&A activity. He also noted that the incoming Trump administration, along with a Republican-led Congress, could potentially ease corporate taxes, regulatory hurdles, and drug pricing provisions, creating a more favorable environment for deals.
Tardio anticipates that 2025 could see “significant megadeals” as companies look to fill gaps in their pipelines ahead of the looming loss of exclusivity in 2028.
