The 43rd annual JP Morgan Healthcare Conference spotlighted renewed optimism in healthcare and pharma dealmaking alongside a surge in AI-driven collaborations. Investors expect a rebound in mergers and acquisitions (M&A), following a lull in recent years, with notable deals such as Johnson & Johnson’s $14.6 billion acquisition of Intra-Cellular Therapies and Eli Lilly’s $2.5 billion investment in Scorpion Therapeutics. The anticipated policy shift under the incoming administration, including Andrew Ferguson’s nomination as FTC chair, is seen as a pro-business move likely to encourage more aggressive M&A activity in the sector.
AI-driven initiatives also took center stage, with Nvidia unveiling high-profile partnerships, including projects with IQVIA, Illumina, and the Mayo Clinic to advance AI applications in clinical research, genomics, and pathology. A standout in the AI space, startup Hippocratic AI, secured $141 million in Series B funding from heavyweights like General Catalyst, Andreessen Horowitz, and Nvidia. This funding underscores Hippocratic AI’s potential to shape the future of healthcare with innovative AI technologies. Meanwhile, venture capital firms and tech leaders like a16z and AWS are ramping up investments and collaborations, further fueling the growing integration of AI in healthcare. With AI-enabled health tech now comprising 37% of the sector’s funding in 2024, the industry’s focus on AI-driven innovation is undeniable.