In the second of our two-part article series, we summarise the key trends from the J.P. Morgan Healthcare Conference (JPM) 2026, covering hot modalities, disease areas of focus, diagnostic/CDx trends and CDMO developments. Part one, looking at M&A, public markets, private fundraisings and biopharma partnering transactions, can be found here.
Hot modalities
Several advanced therapeutic modalities were widely discussed during the conference:
Antibody-drug conjugates (ADCs): ADCs remain in favour and continue to attract significant investment from Big Pharma. The combination of ADCs with PD-1/VEGF bispecifics is generating particular excitement as the dual mechanism of immune checkpoint inhibition and anti-angiogenic activity creates a favourable tumour microenvironment for ADC cytotoxic activity.
There was also discussion about how the ADC field is moving beyond deruxtecan's topoisomerase I inhibition towards diverse novel payloads, including degrader–antibody conjugates (DACs) that catalytically degrade target proteins like protein toxins and immunomodulatory agents designed to overcome resistance and improve therapeutic windows.
Artificial intelligence: Eli Lilly and Nvidia announced an expanded AI partnership, including a US$1 billion co-innovation laboratory in the Bay Area to integrate advanced computing and biology for drug discovery. This builds on their earlier commitment to construct pharma's "most powerful" supercomputer, reinforcing AI as a core strategic capability. Successful companies are demonstrating how use of proprietary data and closed-loop wet labs are reducing clinical failure rates. Operational AI for tech-enabled services to improve hospital systems is also seeing surging investment.
Cell therapies and gene therapies: Interest in cell and gene therapies continues, though perhaps with more measured enthusiasm as the industry grapples with manufacturing challenges and high costs of ex vivo approaches. Traditional CAR-T cell therapies remain transformative for haematological malignancies, with companies like Bristol Myers Squibb and Gilead continuing to expand approved indications. The most exciting frontier is the cautious expansion into autoimmune diseases, with early clinical data suggesting CAR-T therapies targeting B cells may offer durable remissions in conditions like lupus and myasthenia gravis.
A particularly promising development generating significant buzz is in vivo CAR-T therapy, which could revolutionise the field by eliminating the need for ex vivo cell manufacturing. Rather than extracting a patient's T cells, engineering them in a laboratory, and reinfusing them (a process which can take weeks and costs US$100,000+), in vivo approaches use viral vectors or lipid nanoparticles to directly reprogram T cells inside the patient's body. Whilst still early stage, successful in vivo CAR-T could be as transformative as the shift from intravenous to oral drug delivery.
In gene therapy more broadly, the focus has shifted towards more deliverable modalities, including AAV alternatives, exosomes and lipid nanoparticle delivery systems. Targeting nucleic acid payload delivery improves safety, reducing the risk of off-target effects and overcoming the immunogenicity and manufacturing constraints that have plagued earlier programmes.
mRNA therapies: Building on the success of mRNA COVID-19 vaccines, there is continued emphasis on expanding mRNA technology applications beyond infectious diseases. Moderna and BioNTech are advancing personalised cancer vaccine programmes, with Moderna's melanoma vaccine (in combination with Keytruda) showing promising Phase 2b results. The technology is also being explored for rare disease protein replacement therapies and regenerative medicine applications. However, investors are becoming more discerning, focusing on programmes with clear clinical differentiation rather than platform stories alone.
Radioligand therapies: Announced during JPM, Novartis agreed to pay US$50 million upfront (plus undisclosed milestones) to acquire a peptide-based radioligand oncology programme from Zonsen PepLib Biotech, continuing Novartis's strategic focus on radioligand therapies. Continued investment in this modality by multiple companies demonstrates ongoing interest in targeted radiopharmaceuticals.
Protein degraders and molecular glues: Targeted protein degradation has emerged as one of the hottest modalities at JPM 2026, representing a paradigm shift from traditional inhibition to elimination of disease-causing proteins. Molecular glues and PROTACS (proteolysis-targeting chimeras) can address previously "undruggable" targets by hijacking the cell's natural protein disposal machinery. Notable activity includes continued development of degraders targeting transcription factors, scaffolding proteins and other challenging targets in oncology and neurodegeneration. The field has matured beyond proof-of-concept, with multiple degraders now in clinical development and Big Pharma making significant investments—though challenges remain around oral bioavailability, tissue distribution and predicting which targets will respond to degradation versus inhibition.
Disease areas of focus
Several disease areas were highlighted as focal points for investment and development:
Cardiometabolic diseases: The GLP-1 conversation has matured. Investors are less interested in replicating Wegovy™ or Zepbound™ and more focused on next-generation differentiators: oral delivery to break manufacturing bottlenecks, long-acting/low-frequency dosing to improve patient convenience, muscle preservation through combination therapies, and maintenance strategies to sustain weight loss. Next-generation mechanisms being explored include triple-receptor agonists (GLP-1/GIP/glucagon) and amylin-based approaches that increase satiety rather than suppressing appetite.
At the conference, Eli Lilly highlighted its follow-on pipeline products including tirzepatide (a dual-receptor agonist), orforglipron (an oral), eloralintide, retatrutide (a triple receptor agonist), and brenipatide. Novo Nordisk's CagriSema™, a once-weekly combination of semaglutide with amylin analog acrylamide was submitted for FDA approval in December 2025, representing the first GLP-1 and amylin analogue combination for weight management. Zealand Pharma's petrelintide, an amylin analog developed in partnership with Roche, was also discussed, with a Phase 2 readout expected in Q1 2026.
Pfizer outlined plans for no less than 10 phase 3 obesity trials by the end of 2026 (including the programmes it acquired from Metsera), whilst Novo Nordisk acknowledged ceding ground to competitors but stressed a pivot toward mastering the US cash-pay direct-to-patient market. Eli Lilly's CEO noted the obesity market has "surprised us at every turn" and expects fast growth to US$150 billion in annual sales by 2030.
Oncology: This remains a top priority with ongoing advancements in personalised cancer treatments. PD 1/VEGF bispecifics, ADCs, bispecific antibodies targeting multiple tumour antigens, and novel combination approaches dominate the landscape. There is particular focus on lung, breast, genitourinary, gastrointestinal and gynaecologic cancers.
Immunology and inflammation (I&I): Multiple companies are advancing novel mechanisms and combination therapies. Lilly's acquisition of Ventyx and its NLRP3 inhibitor programme highlights the continued interest in novel inflammatory pathways with NLRP3 emerging as a validated target for conditions ranging from gout to cardiovascular disease.
Neuroscience and CNS: Neuroscience remains in favour, with companies advancing programmes in schizophrenia, Alzheimer's disease, Parkinson's disease and other neuropsychiatric conditions. The focus extends beyond traditional small molecules to include novel modalities.
Rare diseases: Interest in orphan drugs remains strong, driven by regulatory incentives such as expedited approval processes and exemptions from certain pricing pressures under the US Inflation Reduction Act (IRA). The new US administration may look favourably on extending IRA exemptions for orphan drugs.
Diagnostics and companion diagnostics
The diagnostics and companion diagnostics landscape is rapidly evolving, driven by precision medicine requirements and technological advances.
In oncology, companion diagnostics are increasingly co-developed with therapeutics to enable simultaneous approval, whilst next-generation sequencing panels and liquid biopsy technologies (including ctDNA monitoring and multi-cancer early detection tests like Galleri) are transitioning from research into clinical practice, though reimbursement challenges remain significant.
Beyond cancer, predictive biomarkers are gaining traction in neurodegenerative diseases (particularly blood-based Alzheimer's biomarkers), autoimmune conditions, and infectious diseases, with point-of-care and home-based testing becoming more prevalent through digital health integration. Minimal residual disease testing and biomarker-driven trial designs (basket and umbrella trials) are becoming critical for treatment monitoring and development, whilst early cancer detection programmes are attracting substantial investment despite ongoing debates around cost-effectiveness and false positive rates.
The regulatory environment remains complex and evolving, with uncertainty around laboratory-developed test regulation in the US and implementation challenges for the EU IVDR, alongside growing emphasis on real-world evidence requirements for demonstrating clinical utility.
Manufacturing and supply chain discussions (beyond GLP-1s)
Some discussions focused on the significant challenges facing the CDMO sector:
- Biologics manufacturing capacity remains tight, particularly for cell and gene therapies.
- Fill-finish capacity bottlenecks are affecting injectable drug launches.
- Specialised manufacturing for complex modalities (ADCs, bispecifics, cell therapies) is in high demand.
- Lead times for manufacturing slots are extending to 18-24 months.
- Pricing power is shifting to CDMOs due to capacity constraints.
Conclusion
The cautious optimism of January 2025 has given way to solid optimism and increasing focus on execution. Whilst the conference may be evolving away from being the primary stage for blockbuster M&A announcements, it remains an essential hub for good winter weather (provided the "atmospheric river" behaves and stays away), relationship-building and taking the industry's pulse.
Stabilising interest rates, substantial dry powder in funds, responsive capital markets, and a more favourable FTC regulatory environment has created conditions for sustained deal-making and innovation throughout 2026. AI is moving from promise to impact, biotech and pharma innovation are driving capital flows, M&A momentum is rebuilding, and policy remains a first-order business variable.
As always, if any of the above themes are of particular interest, please get in touch with Adrian Toutoungi or your usual Taylor Wessing contact.
