Having just returned from JPM 2025, I thought I’d share some of my observations on the state of the industry. It was my first JPM since COVID, and I think it’s safe to say that the biotech industry is experiencing a broad resurgence, with subtle yet significant disruption beneath the surface. During the week, I enjoyed connecting with many attendees, including those who joined the JPM breakfast panel for investors and founders that we co-hosted with Nest Catalyst. Synthesizing those conversations, concerns, and areas for enthusiasm, here are my five takeaways.

1. Funding dichotomy

The biotech market is showing signs of revival, most notably by the financial fits-and-starts that often precede rapid movements. This resurgence is characterized by a bimodal distribution in funding:

1. Big Rounds: Large rounds ($100M+) are commonplace, but they’re met with increasing skepticism & concern (e.g. capital efficiency, ROI, etc.).
2. Efficient Rounds: Smaller, more focused funding rounds are gaining traction. They’re more sustainable and accessible to a broader pool of investors.

2. Chinese drug discovery

Chinese biotechs are making waves in the global market, driven by several key factors:

• Regulatory: Chinese companies often have a more favorable  regulatory framework. Drugs can get into the clinic in < 18 months.
• Vertical integration: Medicinal chemistry, screening, and in vivo work are all housed in a single facility or company.
• Western capital: During JPM 2025, several biotechs announced large rounds after in-licensing assets from Chinese biotechs.

3. Rare disease approaching primetime

More indications are adopting the rare disease playbook for drug development:

1. Disease fragmentation: What has happened with cancer will happen for other large indications. Our understanding of cancer has evolved from one big disease to hundreds of smaller diseases with a common manifestation. We’re seeing this now play out in Alzheimer’s, IBD, autism, etc.
2. Better paths: Faster cycle times, lower development costs, and smaller patient populations make rare disease-focused drug development a preferred method.
3. Regulatory: There is growing optimism that a new administration will enable rare disease drug development to move faster with fewer regulatory hurdles.

4. Market shift and asset acquisition

As markets improve, a lagging industry needs to fill pipeline gaps ASAP:

• Increased demand: There’s a huge “stampede” to in-license assets, driven by the need to backfill R&D pipelines.
• Widespread interest: Both large corporations and mid-sized companies are actively seeking new assets.

5. Improving search & evaluation

Modern biopharmas need to execute quickly and be differentiated to create outsized medical & economic value.

• Capacity: Teams are looking to become more efficient. They want to increase their throughput to identify the right assets for their strategy.
• Competition: They’re finding that the best assets have more competition. It means that teams need to move faster and/or find the diamond in the rough.
• Rigor: Bias always emerges in due diligence. Improving the consistency and rigor of the evaluation process is a priority for these teams.

Move fast or die

Based on my experience at JPM 2025, the biotech industry is at a crucible moment; the market is changing, development strategies are evolving, and there’s a growing emphasis on efficient asset discovery. The industry will need to adapt. From the integration of AI to Chinese competitors, no matter the indication or phase, every biopharma will need to move faster.