Key Takeaways from Jefferies London Healthcare Conference 2024

Ropes & Gray attorneys are back from sponsoring the Jefferies London Healthcare Conference, Europe’s largest healthcare-dedicated conference. From November 19–21, leaders from global companies, investors and regulatory agencies across the pharmaceuticals, biotechnology, medtech and healthcare services sectors talked about the life sciences landscape and what’s ahead in 2025. Here are our takeaways about transactions and investments, as well as U.S. regulatory insights.

Biotech Transactions Insights

Ropes & Gray hosted a fireside chat that explored how to align incentives and drive value creation in biotech transactions. Partner Elizabeth Todd was the moderator with panelists: Jamie Heath, Chief Financial Officer of Apollo Therapeutics; John McDonald, Corporate Vice President, Global Head of BD and M&A at Novo Nordisk; Nigel Sheail, Partner at Versant Ventures; and Monika Vnuk, Global Head of Partnering and BD at Sanofi.

• Optimizing value remains a priority in dealmaking. While the biotech transaction landscape saw improved financing conditions and increased M&A activity in 2024, tension remains around valuations. This is particularly true for late-stage assets, which are highly competitive and demand premiums. Companies are focusing on reaching value inflection points and tailoring deal structures to optimize value, with a notable trend toward milestone-based payments rather than large upfront commitments.
• Deal structure rests on an asset’s stage of development and the expertise required. Licensing and collaboration deals are preferred when the science needs to mature and leverage the distinct capabilities of each partner, while acquisitions are often chosen for value optimization and when a single decision-maker is needed. Some panelists are cautious about option deals and prefer substantial upfront investments to mitigate long-term royalty obligations.
• Biotech and cross-border M&A should be active in 2025. The biotech M&A landscape is poised for growth in 2025, driven by large biopharma companies that seek to fill pipeline gaps and capitalize on improved economic conditions. Cross-border M&A also remains active, with particular interest in jurisdictions like China. However, challenges such as regulatory scrutiny, geopolitical tensions, and the need for strategic alignment with venture capitalists and limited partners will continue to influence dealmaking decisions.

Private Equity Insights

This private equity panel featured: Inaki Cobo, KKR; Adam Dawson, Goldman Sachs; Pascal Noth, Partners Group; Jake Strauss, Warburg Pincus; and Fabrice Turcq, Bridgepoint.

• The shift from public to private markets will continue. Healthcare and life sciences investors do not foresee a rush toward IPO exits, citing underwhelming market performance and a preference for private-market transactions. As many companies are currently undervalued in public markets, the shift from public to private markets will likely continue.
• Investors are focused on strategic acquisitions and well-considered exit strategies. Investment committees are increasingly focused on exit strategies, emphasizing the importance of knowing the buyer and creating appealing businesses. They advocate for investing in familiar companies and management teams, leveraging long-term views, and pursuing strategic acquisitions over EBITDA growth through bolt-ons.
• Dealmaking in 2025 looks better than 2024. There is cautious optimism that dealmaking in 2025 will be slightly better than 2024. For example, we are already seeing a return in early-stage biotech and medtech funding. Despite these green shoots, geopolitical and regulatory uncertainties remain, and we are still feeling the effects of overpricing in 2020–2021, which likely won’t resolve until 2026.

U.S. Food and Drug Administration Insights

This panel featured Dr. Peter Marks, Director at the Center for Biologics Evaluation and Research, and was moderated by Michael Yee, MD, and Akash Tewari, MD, both of Jefferies.

• The Trump administration may expedite some approvals but may also create uncertainty. Dr. Marks anticipates minimal changes for cell and gene therapies (CGTs) under the new administration. He expects continued support and possibly expedited approvals. However, vaccine regulation and public perception may face challenges due to vaccine skepticism and misinformation, necessitating open dialogue at the agency and with the public to address these issues.
• FDA plans to streamline regulatory frameworks for CGTs and rare-disease treatments. This streamlined approach by the FDA aims for more consistent and accessible pathways to approval. Initiatives include hosting public workshops and enhancing the rare-disease hub to provide cohesive responses across different centers at FDA.
• FDA is also focused on preserving public trust. FDA intends to address vaccine skepticism and misinformation through vigorous public dialogue, especially with respect to vaccines for pediatric populations and for COVID-19. The agency is also attuned to access and affordability challenges, especially for CGTs. While FDA does not take cost into account when approving products, the agency is interested in working with industry on treatments that may be easier to administer and therefore more affordable and accessible.

Learn more about how Ropes & Gray supports players in the life sciences and health care industry.