This week’s J.P. Morgan Healthcare Conference in San Francisco has brought a positive outlook for the biopharma industry, according to executives and investors interviewed by BioSpace.
Heather Turner, CEO of LB Pharma, described the mood as upbeat, noting her company’s successful IPO last year despite challenging market conditions. “It’s so much more upbeat,” Turner said.
Maha Radhakrishnan, partner at Sofinnova Investments, highlighted recent IPOs—including Eikon Therapeutics’ debut—and a surge in capital raises before the conference. She stated, “It feels like the doors have opened. It feels like investors are ready to invest in good assets.”
Despite this optimism, attendees are still waiting for a major merger or acquisition announcement that typically makes headlines during the annual event. Last year saw Johnson & Johnson acquire Intra-Cellular for $14.6 billion; in 2019 Bristol Myers Squibb acquired Celgene for $74 billion.
Jane Grogan, Biogen’s head of research, commented on expectations: “Can I say, it’s not going to be us. I’ll just take that off the table.” She added she is interested to see how other large pharmaceutical companies will act and expressed excitement about renewed interest in biotech startups and innovation from China.
Novartis announced a licensing agreement with SciNeuro Pharmaceuticals of China worth up to $1.5 billion for work on an Alzheimer’s disease drug—reflecting broader investment trends in neurodegenerative research. Radhakrishnan noted momentum in this area based on her experience at Biogen during development of Aduhelm and Leqembi.
Radhakrishnan downplayed concerns over the absence of a significant M&A deal at this point in the conference: “People say, but we didn’t see anything this morning. I’m like, ‘Guys, why are you focusing just on the Monday morning? It could happen anytime.”
