US President Donald Trump arrived for an announcement in Washington, DC. Drug pricing, patent cliffs, and dealmaking were hot topics at the JPMorgan Healthcare Conference in San Francisco as investors and drugmakers discussed their plans for 2026 amid optimism for sector recovery.
Investors see signs of recovery in U.S. biotech, betting on lower interest rates and renewed deal appetite. Big pharma seeks buyouts and collaborations to make up for $300 billion in potential lost revenue from expiring drug patents. Concerns around Trump’s healthcare policy agenda have eased with landmark drug pricing deals.
Some pharma executives believe drug pricing deals under Trump’s policy will have a modest impact on their businesses. Companies like Sanofi and AstraZeneca anticipate limited effects from the agreements and are expected to outline their impact in their 2026 outlooks.
Pharmaceutical companies are confident they can offset losses from upcoming patent expirations by focusing on dealmaking. Merck CEO Davis aims to grow through the loss of exclusivity for Keytruda, projecting $70 billion in sales from new products by the mid-2030s. Bristol Myers Squibb prepares for generic competition with up to 10 new products by the end of the decade. Bristol Myers Squibb is focusing on business development in core therapeutic areas with innovative science to treat challenging diseases. Novo Nordisk faces patent expirations for semaglutide in certain countries in 2026, leading to pricing pressure. Novo Nordisk aims to offset price cuts with volume growth and business development efforts.
Health and Human Services Secretary Robert F. Kennedy Jr.’s changes to U.S. immunization policy are causing concern among executives. Pfizer’s Bourla criticizes the rollback of recommended immunizations for children, calling it politically driven with no scientific merit. Sanofi’s Hudson hopes evidence will prevail amidst vaccine scrutiny by the Trump administration.
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2. Apple becomes first US company to reach $3 trillion market cap. Stock price reaches all-time high of $182.88 per share. Company’s market value is now larger than the GDP of most countries.
3. Amazon reports record-breaking $113.1 billion in revenue for Q2, beating expectations. Earnings per share of $15.12 also exceed estimates. Company attributes strong performance to growth in e-commerce and cloud computing segments.: Novo Nordisk, Pfizer execs weigh in