“The JPM of Europe” – London Life Sciences Week grows in stature as markets rebound

With its double-header of conferences held in London, mid-November is fast becoming one of the most important events in the industry calendar, reports Richard Staines.

It may have been a cold rainy November week in London, but the atmosphere was buzzing with optimism at the two conferences that are the cornerstones of London Life Sciences Week. With two major conferences – LSX Inve$tival and the Jefferies London Healthcare Conference, plus the LSX Lifestars awards – this week is increasingly seen as a build-up towards “the big one” in January, the JP Morgan Healthcare Conference in San Francisco.

London Life Sciences Week arrived as the industry experienced an improvement in fortunes in 2024, following a 2023 that could optimistically be described as a doldrums period for biotech investment.

In the first three quarters of 2024, the UK’s biotech sector had already raised almost £1.4 billion in venture capital funding, more than the entirety of 2023 when the sector attracted just over £1.2 billion. This was on the back of a global resurgence in biotech investment, which has ticked upwards despite the challenges that emerged in 2024.

In its own Healthcare Temperature Check, Jefferies cited higher interest rates, geopolitical instability, and “democratic instability” as almost half the world's population voted in national elections. This new sense of optimism was reflected in the large attendance at the Jefferies event, which has spread from its traditional home at the Waldorf Astoria Hotel on Aldwych, adding the neighbouring ME hotel to cater for the larger attendance.

Kiran Roest, VP of corporate development at iOnctura, said: “This year Jefferies was bigger and better than ever and indeed has now grown so big that it took over the ME hotel opposite, so they could fit in the sheer volume of biotechs, pharma, investors, and bankers. There was an increasing presence from the States, with many attendees reporting it to be an essential warm-up to JP Morgan in January.”

Amir Hefni, CEO of Resolution Therapeutics, said there was a “more positive sentiment than last year” and that this year’s event was “more organised and less crowded,” suggesting that the logistics have improved despite the increased attendance.

Graziano Seghezzi, managing partner at Sofinnova Partners, added: “The conference has grown significantly, with more US investors and major pharmaceutical companies participating. Its expanded reach and heightened industry presence solidify its status as a must-attend biopharma event, offering unmatched networking and insights.”

Andreas Pahl, CEO of Heidelberg Pharma, agreed with the comparisons to the San Francisco event: “The conference is certainly much bigger than last year, and many people attending were saying it is fast turning into the JPM of Europe!”

Fringe benefits

As is the case with JPM, fringe events have taken on a key role, as many earlier stage biotechs were unable to gain access to the main event, which is principally for larger, listed companies.

Nearby hotels and venues were busy hosting networking events, which gave a further opportunity for informal one-to-one interactions between biotechs, investors, and other stakeholders.

Resolution’s Amir Hefni said that most meetings took place outside Jefferies, noting that there were “more US investors and companies onsite than last year.” Heidelberg’s Pahl agreed that the fringe events for LSX and Jefferies were particularly productive. He said: “London was filled with a real buzz about the conference and the fringe events, as everyone looks forward to what could be a productive 2025.”

Paul Little, CEO of Vesper Bio, agreed: “The less crowded atmosphere and diffuse meeting locations meant fewer random meet-ups and so the name of the game becomes good forward planning during the day. Finally, there has been a significant uptick in the number of receptions, which give good value for chance catch-up conversations.”

JPM ’25 and beyond

The week was a chance to not only reflect on the successes of 2024, but also to look forward to how the market will shape up in 2025.

In an online Q&A, Tommy Erdei, Jefferies global joint head of healthcare investment banking, predicted an increase in private equity investment in the sector in 2025.

Investors remain keen on injectable drugs and there is continued interest in GLP-1 drugs from both innovator companies and generics firms. Investment in R&D is driving growth in the biotech sector, according to Erdei, although there are worries about the impact of recent elections in the UK and the US on investment confidence.

“Concerns remain on the volatility of the new US administration,” said Resolution’s Hefni.

Vesper’s Paul Little commented this led to “a mixed bag of sentiment” at the conference. VCs could be hard to find, he noted, although there was “good traction on the buyside” from pharma business development units.

This, and the feeling that recruiters are busy, “signal improvements ahead,” according to Little.

He continued: “Larger VC rounds for those companies that have raised on the one hand, combined with continued stretching of runways in under-funded companies on the other, suggest that the reset and clear-out is continuing.”

There have been no UK-based biotech IPOs this year, but a flurry of public launches in the US suggests this could be down to structural issues in the market.

The US is where the big IPO money is, and those attending think that the resurgence will continue during 2025.
Heidelberg Pharma’s Andreas Pahl added: “Despite the uncertainties, there’s hope that the biotech IPO window may be reopening. Indeed, there is a lot of pent-up demand after a long period when IPOs were difficult or impossible to get off the ground. ADCs [antibody-drug conjugates] were mentioned several times by investors and pharma companies as one of the hottest investment topics for the coming year as well.”

Sofinnova’s Graziano Seghezzi said: “There was a widespread sense that public markets might rebound in 2025, though it’s unclear if this reflects optimism or reality.”

While 2025 remains an unknown quantity, it’s clear that fundraisers and investors see the value in visiting London in November.
The events are bridging a gap between European companies and US investors, while also setting the agenda for JPM in just a few weeks’ time.

Vesper’s Paul Little concluded: “There is a strong desire to have this conference grow and mature as a European hub for deal making.”