The 44th Annual J.P. Morgan Healthcare Conference concluded last week in San Francisco. In general, we noted a cautiously optimistic atmosphere, as the uncertainty seen last January from the incoming Trump 2.0 administration gave way to a relatively more predictable environment—albeit, not before many twists and turns. Our Freshfields Life Sciences team was in attendance, observing the key trends firsthand and discussing the industry’s present and future outlook with clients and other attendees. Below are our takeaways.
A Strong Dealmaking Environment
Although only one “mega-deal” was announced during the conference, the lead-up to JPM saw a wave of strategic partnerships and M&A transactions. Some industry participants noted the challenges around engineering the precise timing of transactions, as well as an increased focus on using the conference as an opportunity to discuss potential transactions, as reasons for the relative scarcity of deal announcements during JPM in the past few years. Those factors resonate with us; we certainly saw (and scurried alongside!) a steady stream of folks in suits, as well as logoed fleeces and puffer jackets, from meeting to meeting around town throughout the week.
We noted a consistent refrain that there is a strong and competitive dealmaking environment in the biopharma and MedTech space, and an expectation it will continue to be robust throughout 2026 and beyond. There has been a lot written about the pursuit by many major multinational pharmaceutical companies—who are under pressure from upcoming “patent cliffs” and resulting revenue losses—to strengthen their late-stage and commercial portfolios through M&A and licensing deals.
Also at play here is a desire to hedge against the risk of negative read-outs from internal programs that are expected in 2026. We certainly heard a lot about this, with a sentiment that targeted product acquisitions or licensing deals may be the preferred way forward for buyers to plug these gaps. However, at the same time as large biopharma companies seek to stabilize their near-term revenues, they remain focused on building out their earlier-stage portfolios through dealmaking.
In our view, none of these dynamics are likely to go away anytime soon, so we expect there to be a steady stream of biopharma and MedTech deals of all shapes and sizes throughout the year.
AI, China, Obesity, Women’s Health, and Longevity/Anti-Aging
When discussing dealmaking more generally, we often found that AI, China, obesity, women’s health, and longevity/anti-aging kept coming up. This was hardly surprising to us for the following reasons:
- A few notable AI-driven transactions, both on the M&A and licensing front, were announced during the conference, which further evidenced the industry’s increased investment in leveraging AI for a wide range of uses including the development of AI models to accelerate drug discovery and R&D. We are particularly interested in the use of AI agents and AI-driven automation of complex workflow tasks, whether in drug discovery, personalizing medicine, running clinical trials, or healthcare administration.
- Regarding China: a number of transactions have already been announced this year whereby U.S./European companies obtained access to Chinese innovation. We expect this trend, which has accelerated in the past 12-18 months, to continue. The advantages that China has over the U.S. and Europe in drug development—such as condensed development timelines, due in part to faster enrollment of investigator-initiated trials facilitated by the scale of China’s patient population—have contributed to this flurry of deal activity. However, commentary during JPM reflected a potential shift in industry focus to how governments in the U.S. and Europe can better support local drug discovery and development efforts rather than focusing on slowing down China’s. We tend to agree this is best way forward for U.S. and Europe, as we don’t see any signs of China slowing down as a key innovation hub in the industry.
- With respect to obesity, conversations focused on the next phase of the market, including the rise of orally-administered formulations, mounting competition of innovative options, the potential impact of broader generic entry, and questions around patient access and reimbursement. Many people also acknowledged the massive manufacturing investments required to meet unprecedented global demand, and the race to develop next-generation multi-agonist drugs that promise even greater efficacy. We expect a continued flurry of M&A and licensing deals to be announced in the space—with such a sizeable patient market, even a small share can yield significant revenue.
- We also had a number of conversations regarding women’s health which has emerged as a significant profitable investment sector in light of the massive total addressable market. No longer a “niche” area, folks were buzzing about significant exits over the past year, strong current growth, and an increasing appreciation of the untapped potential in areas like menopause, maternal health, and AI-powered diagnostics. We expect 2026 to bring a continued focus on transitioning from digital health and other technology-centric innovation to therapeutics and diagnostics.
- Finally, we found that attendees were quite interested in the work being done by companies in the field of longevity and anti-aging. We heard about the evolution of the space from “wellness” to a true drug category, as aging is increasingly viewed as a manageable biological process. Hot topics included regenerative medicine, hormone optimization, and stem cell therapies. We expect to continue to see significant investment in this space, with investors focusing on funding companies with clinical data rather than abstract narratives.
An Improving Financing Ecosystem
The start of 2026 suggests that we are entering an improved financing environment for life sciences companies. Indeed, we frequently heard about the substantial volume of capital being raised, indicating a renewed (though, admittedly, still selective—with a focus on companies with good proof-of-concept data and/or developing products in big markets) investor appetite for opportunities in the space. This was anchored by what appears to be an improving IPO market; in addition to a successful IPO pricing in the run-up to the conference, two high-profile biotech IPO filings were made during the week.
A number of early-stage financing deals were also announced during the conference, including by companies that are developing cancer immunotherapies and leveraging AI for drug discovery. Commentators noted that the volume of U.S. biotech share sales in the start of the year is higher than we have seen since 2021—which we take to be quite a positive sign for the year ahead, and one that is consistent with our pipeline. We are cautiously optimistic for a frothy financing market in the year ahead, which will hopefully be open to companies at various stages in their lifecycles.
MFN Pricing and Tariffs
The continuously evolving regulatory landscape impacting life science companies was front of mind for many at the conference. In particular, we often found ourselves discussing the topics of most-favored nation (MFN) pricing and tariffs. Although almost all biopharma companies that received letters in July 2025 regarding the Trump administration’s MFN pricing executive order have now announced deals with the U.S. government, many other companies with relatively smaller commercial portfolios remain concerned about the possibility of becoming subject to MFN negotiations with the administration. In their view, it may be more challenging for them to craft a workable MFN pricing deal because they have less bargaining power and financial cushion to absorb the risks associated with such agreements.
The Trump administration’s announcement of the “Great Healthcare Plan” on the last day of JPM heightened this concern. The plan calls for, among other things, the U.S. Congress to memorialize MFN pricing in statute. In response, commentators noted Congress’s past reluctance to codify MFN pricing, so it remains to be seen how effective the measure will be. That being said, the announcement suggests MFN pricing will remain an area of focus for the industry in the year ahead.
Companies’ response to the threat of tariffs was also a frequent topic of conversation. Reporting during JPM suggested that the U.S. Congress has concluded its investigation into pharmaceutical tariffs. If true, new U.S. tariffs on pharmaceutical products will not be implemented. However, the potential threat of these tariffs appears to have had their intended effect. During JPM, a number of contract manufacturing organizations announced their acquisition or construction of additional U.S. manufacturing capacity. Some also noted their transition of certain European and Asian manufacturing activities into the U.S, a trend that we expect to continue.
Conclusion
As JPM wrapped up, we were left with a sense of optimism and excitement for the year ahead, which we expect to be filled with interesting and complex deals and a more robust financing environment, though some headwinds from regulatory uncertainty remain. At Freshfields, we continue to track the industry-wide developments that kicked off at JPM 2026, and our team looks forward to supporting the Life Sciences industry in a busy year ahead.
