Top Takeaways from JPM 2025: Resurgent Deals and Evolving Healthcare Policies

By Tyler Morris, Director of Capital Development, Biocom California

After a week at the 2025 J.P. Morgan Healthcare Conference, it was clear that the healthcare industry is experiencing a dynamic intersection of robust dealmaking activity and significant government influence, creating a distinct landscape for companies and investors.

By the end of the first day, it was evident that dealmaking within the pharmaceutical and biotech sectors is seeing a notable resurgence. High-profile acquisitions include Johnson & Johnson’s purchase of Intra-Cellular Therapies for $14.6 billion, Eli Lilly’s acquisition of Scorpion Therapeutics for $2.5 billion, and GSK’s acquisition of IDRx for up to $1.15 billion. These deals underscore the ongoing consolidation in healthcare as companies seek to bolster their portfolios and tap into innovative therapies. Alongside these acquisitions, AI-related partnerships are also on the rise, particularly in the tech-healthcare space. For instance, NVIDIA has formed new alliances with IQVIA, Illumina, and Mayo Clinic to leverage artificial intelligence in advancing drug discovery and clinical protocols. These large deals and new partnerships buoyed sentiment at the conference but do not necessarily signify that the trend will continue at this magnitude.

Driving some of these deal announcements is the looming threat of patent expirations. It is estimated that by 2033, pharmaceutical companies could face $400 billion in revenue losses due to expiring patents, prompting more strategic acquisitions. However, some companies, such as Gilead, are taking a more selective approach to mergers and acquisitions. Gilead’s $4.3 billion acquisition of CymaBay in 2024 was a strategic move, but the company’s CEO has indicated that Gilead plans to adopt a more cautious M&A strategy in the coming years, focusing on smaller, more targeted acquisitions.

As the election cycle approaches, anticipated changes in government policies and regulatory frameworks are having a significant impact on the healthcare industry. The Inflation Reduction Act (IRA), a major component of U.S. healthcare policy, continues to influence drug pricing by introducing price negotiations for Medicare drugs. Starting in 2026, the IRA will allow the U.S. government to negotiate prices for a limited set of drugs, which is expected to reduce revenues for pharmaceutical companies. While the IRA is viewed as a political win for the administration, many in the industry express concern that it may hinder innovation by reducing the financial incentives for companies to develop new treatments.

In addition to pricing reforms, the conference uncovered increased speculation about further regulatory changes. The new U.S. administration is considering an overhaul of the Food and Drug Administration (FDA), which could impact drug approval processes, clinical trials, and the speed of market access. Ted Love, chair of the Biotechnology Innovation Organization (BIO) and a speaker at Biotech Showcase, noted that the administration’s reform plans could be far-reaching, though specific details have yet to emerge. These potential reforms are causing uncertainty but also shaping how companies plan their future drug development strategies.

In summary, this year’s conference appeared to usher in a period of significant innovation and strategic dealmaking, driven by the need to fill pipelines and opportunities created by new technologies such as AI. However, these advancements are tempered by government policies aimed at controlling drug pricing and reforming regulatory bodies. Companies must balance their drive for innovation with the realities of navigating an evolving regulatory landscape, making the coming years a period of both opportunity and challenge for the healthcare industry.