By Brian Nightengale, EVP & President, Healthcare:
Attending the JP Morgan Healthcare Conference is always an illuminating experience, and this year was no exception. With over 500 companies representing what I understood to be nearly $11 trillion in market capitalization, the event provided a sweeping view of the healthcare landscape as we head into 2025. While the attendees spanned sectors like life sciences, technology, and health systems, the unifying theme was clear: innovation isn’t optional — it’s essential.
For those who couldn’t attend, here are the key themes that I took away from the meeting.
Life Sciences: A New Era of R&D and M&A
The life sciences sector dominated the conference, and the conversations were revealing. If you’re still thinking of “big pharma” as focused on traditional small molecule drugs, it’s way past the time to update your mental model. The spotlight has certainly continued to shine brightly on biopharmaceuticals, gene therapies, and large-molecule innovations. Even some of what many would view historically as traditional generic manufacturers are embracing biosimilars and advanced therapies and repositioning themselves as biopharma manufacturers. Oncology remains a hub of innovation, with CAR-T therapies and antibody drug conjugates transforming care. Rare diseases are also gaining attention, driven by orphan drug designations and premium pricing opportunities.
Not surprisingly, artificial intelligence is fueling this transformation, optimizing drug discovery, clinical trials, and patient modeling. By accelerating timelines and enhancing precision, AI is creating fertile ground for mergers and acquisitions. Looking ahead to 2025, expect a wave of M&A activity as companies strengthen their portfolios in high-growth areas like precision medicine and digital therapeutics.
Health Systems: Outpatient Focus and Strategic Partnerships
Health systems seem to be doubling down on their ongoing focus on outpatient services to provide more accessible, cost-effective care and to build longitudinal relationships with their patients. Organizations like AdventHealth and Sutter Health are leading the way, expanding telehealth platforms and investing in outpatient networks. They’re also leveraging technology, from AI diagnostics to remote monitoring tools, to improve outcomes and reduce costs. However, rising labor costs, inflation, and shifting demographics are straining financial sustainability.
To address these challenges, many health systems are pursuing alliances. These partnerships allow organizations to scale operations, pool resources, and better navigate the pressures reshaping healthcare delivery.
Retail Pharmacies: Embracing Transformation
This year, there was a notable absence of some of the larger retail pharmacy players that have presented in the past. From my perspective, this is understandable, given the significant challenges and transformation pharmacy retailers are currently navigating. There was considerable discussion around the opportunity to better leverage the convenience, accessibility, and clinical expertise provided by retail and community pharmacies to meet broader health and wellness needs within the communities they serve. Services like telemedicine, chronic disease management, and immunizations are becoming more standard and will greatly expand once adequate payment structures are scaled. With AI and analytics, pharmacies are improving medication adherence and building stronger patient relationships. Digital tools, including mobile apps and virtual consultations, are meeting consumer demand for convenience.
In my opinion, there is a significant opportunity for community pharmacies to better align with health systems and insurers to deliver coordinated care centered on patients’ needs and care preferences, all enabled by integrated technology and data. From what I saw at the meeting, I’m encouraged that the rapidly evolving technological capabilities are starting to enable this integration across various provider stakeholders, tech platforms and consumer engagement applications.
Technology: The Backbone of Innovation
The technology sector is driving healthcare innovation, with AI and machine learning leading the charge. AI is enabling earlier detection of diseases like cancer and helping tailor treatments. Digital tools, such as wearables and telehealth platforms, empower patients to manage their health more proactively, especially in underserved areas.
Still, challenges remain. Data interoperability and cybersecurity are key hurdles. Companies are investing in secure, interoperable systems to ensure safe data exchange and build trust in these technologies. These efforts are essential to unlocking the full potential of digital health.
The Bottom Line
The JP Morgan Healthcare Conference made one thing abundantly clear: 2025 will be a year of rapid transformation across the healthcare industry. While I can’t claim any track record for forecasting, these are my top 3 predictions coming out of this conference:
- The life sciences sector’s nearly exclusive focus on developing and commercializing biologic and precision medicines will rapidly expand the traditional definition of “specialty medications.” Soon, if not already, the market will be dealing with “specialty for the masses” (think GLP-1’s).
- If successful in their mission, health systems will redefine themselves as integrated health and wellness destinations, competing for the loyalty of consumers in their communities, much like grocery stores do today (just food for thought).
- Once scope-of-practice expands and the appropriate payment models are scaled, retail and community pharmacies will be “unleashed” as highly accessible, highly capable, and highly affordable health care destinations. They will fill a growing shortage of primary care providers in many communities across the country, and the pharmacists in these settings will finally be able to practice at the top of their training — and get paid fairly to do so.
I’m not sure of the timeframe for these predictions to happen, but I’m encouraged that IF life sciences companies, health systems, community pharmacies, and the payer community can better align on their goals, incentives, and focus on the health and wellness consumer — each empowered by highly integrated data and analytics capabilities, with the patient at the center — our companies, healthcare system, and, most importantly, health and wellness consumers (of which we all are) will be better served. I walked away from this year's JP Morgan Healthcare Conference encouraged that we may be closer than we think.