Healthcare Investing Trends from Top Companies

Even so, drugmakers targeting global markets said they cannot rely on Chinese patient recruitment alone. Even if enrollment is faster in the region, regulators may still expect Phase 3 trials to include the U.S. and Europe, which means companies must balance speed with regionally-representative data. In addition, companies must also be ready to navigate any future U.S. restrictions on drugs licensed from Chinese biotech companies or that include Chinese clinical trial data.

4. Drug Pricing Pressures and Alternative Models

The debate over drug pricing is increasingly shaped by policy proposals like Most Favored Nation (MFN), which would peg U.S. reimbursement to the lowest prices paid globally. Companies argue that Europe, where prices are lowest, is not a favorable benchmark because reimbursement there often takes years, while high clawback rates and mandatory rebates act as taxes on revenue.

If drugmakers stop offering lower prices in Europe to avoid pulling down the U.S. benchmark, it may not mean that Europe pays more for drugs. Instead, it could mean that the overall pot of funding in Europe remains fixed and that fewer patients get reimbursed at higher prices, one executive said. Company leaders also shared that it may be premature to raise prices on existing European products, though they are considering higher prices for new launches. Another possible byproduct of MFN would be more splits-rights deals, in which a company licenses EU or emerging-market rights to a partner, which could insulate U.S. pricing from downward pressure.

Drugmakers said they are exploring direct-to-consumer (DTC) models as a lever to lower costs while broadening access. This approach may be most viable for drugs including those for HIV and diabetes, oral GLP-1s and respiratory or inhaled medicines, compared to high-cost branded therapies that require complex financing. DTC models also align with cash-pay channels, and options for patients to secure lower prices by committing to longer treatment durations. Employer coverage adds another layer of support by capping patients’ out-of-pocket costs.

5. M&A and Partnerships in Healthcare

Mergers, acquisitions and partnerships remain critical strategies for healthcare companies facing the loss of exclusivity cliff as drugs lose patent protection. To sustain growth, companies are actively looking to acquire assets that can be advanced from early stages into commercialization and, in some cases, build licensing businesses.

While oncology and immunology remain hot areas, executives highlighted neuroscience as the second-largest therapeutic area, spanning psychiatry, Parkinson’s disease, neurodegeneration and Alzheimer’s—where demand and innovation are accelerating.

Beyond drug pipelines, hospital and health system M&A is also reshaping access and diagnostics. Hospitals are consolidating to gain access to patients and considering acquiring labs to run diagnostic testing for physician offices.

Executives at the conference also spoke about interest in specialty test providers, as their proprietary diagnostic tests can be licensed to labs and health systems. Still, some executives cautioned that some private company valuations remain high, which can still ultimately deter deal making.