Decoding JPM 2025: What the deals and trends mean for the industry

This month's review focuses on the key takeaways from the J.P. 摩根 Healthcare Conference 2025 and what they mean for the year ahead. We will explore the resurgence of M&A, shifts in regulatory policies under the Trump administration, and trends driving outsourcing demand.

The ramarketing review offers vital industry knowledge to keep you in the know, featuring a different ramarketing expert each month to deliver headline highlights.?

If you’d like to receive updates straight to your inbox, sign up here.

?? Introducing January’s sector expert…

Katie Kovalevich , CDMO Sector Lead

Katie brings extensive CDMO experience to the ramarketing team, having worked in various roles at Avista Pharma Solutions, Catalent, and Alcami. Her background in environmental monitoring, account management, and sales and marketing, gives her a deep understanding of the CDMO industry.?

This expertise allows her to ensure that ramarketing's Account Management and Business Development teams stay informed about the evolving needs of CDMO clients, and that those clients can trust the team's firsthand industry knowledge.?

Let’s dive in…

Deal-making is back

The J.P. Morgan Healthcare Conference 2025 made one thing clear: deal-making is back, regulatory policies are shifting, and outsourcing remains a critical driver of biopharma innovation. After a slower 2024, this year is shaping up to be one of renewed investment, with contract service providers playing an increasingly important role in supporting drug development and commercialization.

For those in the outsourcing sector, here’s a straightforward look at the key takeaways from JPM 2025 and what they mean for the year ahead.

?? M&A signals a stronger year for outsourcing

Mergers and acquisitions (M&A) have returned as a major theme, with big pharma actively pursuing deals to strengthen pipelines, secure manufacturing capacity, and navigate evolving regulatory pressures. Several high-profile transactions stood out at JPM:

• Novo Holdings’ $16.5 billion acquisition of Catalent was finalized in late 2024, but its effects will be felt throughout 2025. The deal removes a major independent CDMO from the market, leading to increased demand for biologics and sterile fill-finish capabilities, benefitting both large and specialized contract manufacturers.
• Johnson & Johnson’s $14.6 billion purchase of Intra-Cellular Therapies expands its neuroscience pipeline, reflecting the continued investment in central nervous system (CNS) therapies.
• GSK’s $1.15 billion acquisition of IDRx secures a precision oncology asset, reinforcing the demand for specialized CDMO capabilities in antibody-drug conjugates (ADCs) and high-potency biologics.

The resurgence in M&A highlights a growing reliance on outsourcing partners, particularly for biologics, sterile injectables, and cell and gene therapy manufacturing. As large pharmaceutical companies seek greater efficiency, contract development and manufacturing organizations (CDMOs) that offer scalable, regulatory-compliant solutions will have a competitive advantage.

?? Policy and regulatory changes under the Trump administration

With the Trump administration back in office, industry expectations are shifting toward a more business-friendly regulatory environment. Several key areas could have a direct impact on outsourcing and biopharma investment strategies:

• M&A approvals may become more streamlined: A leadership change at the Federal Trade Commission (FTC) is expected to result in a less restrictive approach to pharma acquisitions, which could accelerate deal-making in the sector.
• Potential revisions to the Inflation Reduction Act (IRA): Among other changes, the pharmaceutical industry is pushing for an extension of the exclusivity period for small molecules from nine to thirteen years, a change that could incentivize investment in small-molecule drug manufacturing.
• Increased scrutiny on pharmacy benefit managers (PBMs): the PBM Transparency Act is likely to be passed during this administration’s term.
• A shifting global supply chain: With ongoing concerns about reliance on Chinese biotechs, there is increasing emphasis on localizing production to the U.S. and Europe. Contract service organizations investing in Western-based manufacturing infrastructure may find themselves in a stronger position.

Financial markets are also reacting to these changes. While the initial public offering (IPO) market is reopening, investors remain cautious, prioritizing late-stage assets with strong commercial potential. Meanwhile, private equity firms continue to invest heavily in high-margin CDMO services, particularly in biologics, ADC manufacturing, and precision oncology production.

?? Trends driving outsourcing demand

Beyond M&A and regulatory shifts, JPM 2025 highlighted several key therapeutic and technology trends that will shape demand for contract services in the coming year:

• The GLP-1 boom continues: With obesity and metabolic disorder treatments continuing to dominate the market, CDMOs are seeing growing demand for sterile injectables and complex formulations. This sector remains one of the most significant opportunities for contract manufacturers.
• Oncology remains a high-growth area: Antibody-drug conjugates (ADCs) are receiving strong investment, with several biopharma companies expanding manufacturing capacity for high-potency biologics. CDMOs with the ability to support ADC production will be well-positioned.
• AI is moving beyond hype to practical applications: Companies are actively using artificial intelligence for clinical trial optimization, predictive analytics in biomanufacturing, and operational efficiency improvements. The focus is now on practical, scalable applications rather than exploratory use cases.

?? What this means for contract service providers in 2025

The outlook for 2025 suggests strong growth opportunities for outsourcing partners, but success will depend on strategic investments and the ability to adapt to shifting industry needs.

CDMOs and other contract service organizations should focus on:

• Expanding capabilities in sterile injectables and biologics to meet the increasing demand for GLP-1 drugs and complex therapeutics.
• Investing in Western-based manufacturing infrastructure to align with evolving trade and regulatory policies.
• Strengthening relationships with private equity and large pharmaceutical companies as outsourcing remains a key strategic priority for both.
• Leveraging AI-driven process optimization to improve efficiency, reduce costs, and enhance service offerings.

With capital flowing back into biopharma and demand for outsourced services increasing, 2025 presents significant opportunities for companies that can scale effectively, differentiate through specialized capabilities, and position themselves as strategic partners in drug development and commercialization.

For contract service providers, the key to success will be agility, investment in high-growth areas, and the ability to navigate a dynamic regulatory and economic landscape.

Stay tuned for more ramarketing review installments - get monthly updates direct to your inbox by signing up for alerts.

.?