The U.S. administration is keen to sign up more companies to drug pricing deals, and mandatory rules are on the way. But how will the midterm elections affect these and other healthcare policy issues? At RBC’s Global Healthcare Conference, Hunter Hammond and Will Humphrey of Capstone’s healthcare group offered insights on the direction of policy for the rest of the year and beyond.

Key Points

• Mandatory Most Favored Nation pricing rules are likely to be contested in court.
• The FDA’s initiatives to speed drug development are signals of its modernization intent.
• The U.S. is more likely to use incentives than sanctions to address mass in-licensing of Chinese innovation.
• The current program to extend access to GLP-1s could be a template for future breakthrough drugs.
• Democrat gains in the midterm elections would likely limit further hospital cuts.

• Introductions [00:08]

Host Joe Coletti introduces highlights from the U.S. Healthcare Policy Panel at RBC’s Global Healthcare Conference, featuring Hunter Hammond and Will Humphrey of Capstone’s Healthcare Group.

• Midterm campaigning [00:40]

In the run-up to the midterms, the U.S. administration will aim to focus on messaging about popular policies, such as cutting waste and fraud in Medicare and Medicaid.

• FDA changes [01:41]

After turmoil in the FDA, new leadership is designed to promote stability. Recent moves to speed drug approvals are likely to continue and offer an important signal about FDA modernization.

• Chinese innovation [04:31]

The administration may be uncomfortable with U.S. in-licensing of Chinese technologies, but it is more likely to respond with incentives than any attempt to block the practice.

• Drug pricing [06:17]

Most Favored Nation mandatory pricing models have yet to be finalized and are likely to be challenged in court. Democrats will not support codification of MFN.

• Democrat priorities [08:08]

Democratic gains in the midterms would have the effect of protecting hospitals from further cuts. Reform of 340B is unlikely, however.

This episode of RBC Pathfinders in Biopharma explores how next-generation retinal gene therapies could transform treatment for patients with wet AMD and diabetic macular edema. CCBO of 4D Molecular Therapeutics, Chris Simms, discusses the promise of reducing the burden of frequent injections through long-lasting therapies designed to preserve vision for years. The conversation also examines the firm’s commercial opportunity, global roll-out ambitions, and why sustained retinal care could reshape the future of retina.

A growing number of biotechs are defying the perception that you need the might of big pharma to launch a new drug. But there’s always the prospect of an offer that simply can’t be refused. Three leaders who recently sold companies – Whit Bernard (Metsera), Mike MacLean (Avidity), and Gregory Kunst (Aurion) – shared their experiences, and their views on M&A trends in the sector, at RBC’s recent Global Healthcare Conference.

Key points:

• Metsera managed to stay focused on business through a high-stakes bidding war.
• A strong sense of its own value helped Avidity to its Novartis buyout.
• In a tough capital-raising landscape, biotechs need to be open to partnerships with bigger firms.
• While the patent cliff is spurring pharma deals, corporates have a variety of M&A objectives.
• A series of successful drug launches by small innovators may signal the end of investors’ ‘short the launch’ strategy.

• Introductions [00:07]

Host Joe Colletti introduces highlights from the M&A panel at RBC’s Global Healthcare Conference, featuring Brian Abrahams and colleagues posing questions to Whit Bernard (Metsera), Mike MacLean (Avidity), and Gregory Kunst (Aurion).

• Biotech histories [01:01]

Each of the execs outlines the background to their former companies and the therapies they developed.

• Avidity’s experiences [05:43]

Mike MacLean discusses the experience of negotiating with Novartis, through multiple bids and a decision by Avidity to pursue its own capital raise before the eventual acquisition.

• Metsera’s experiences [09:32]

Whit Bernard recalls how Metsera responded to becoming the subject of a competitive deal between Pfizer and Novo Nordisk.

• Capital raising methods [11:53]

Gregory Kunst suggests CEOs should be open to raising capital through strategic partnerships as well as traditional institutional funding.

• What pharmas want [14:07]

Big pharma is broadly incentivized by the patent cliff, but biotechs need to understand the varying objectives of different companies.

• Short the launch strategy [23:42]

Investors are taking a different view of start-ups’ capabilities as more small and mid-sized biotechs commercialize their own innovations.

Life sciences is a hub of dealmaking activity. Over the past year, more than 30 transactions valued at $1 billion or more have crossed the finish line. But the picture in other segments of healthcare is more mixed. At RBC Capital Markets’ Global Healthcare Conference in New York, Darren Campili, Global Head of Healthcare Investment Banking, hosts colleagues David Levin, Ahmed Attia and Jason Levitz to explore what's driving deals and where the opportunities are heading.

Key Points

• Healthcare M&A is strong, with a surge of high-value deals in life sciences.
• Equity performance is challenging, but investors in life sciences and biotech have seen good outcomes.
• IPO activity has rebounded; again, life sciences and biotech are most successful.
• Dealmaking has been largely unaffected by regulatory uncertainty, though challenges remain on reimbursement and MFN pricing.
• Larger companies believe they have the edge in using AI for profitability and competitiveness.

• Introductions [00:25]

Host Darren Campili, Global Head of Healthcare Investment Banking, introduces the podcast and guests: David Levin, Co-Head of U.S. M&A; Ahmed Attia, Managing Director, Healthcare M&A; and Jason Levitz, Head of Healthcare Equity Capital Markets.

• M&A strength in healthcare [01:11]

The M&A market in life sciences is extremely strong. The number of $1 billion-plus deals has tripled in the past year. There has been significant activity among mid-caps as well as large-cap companies, and a diversity of premiums.

• Healthcare in the equity markets [13:24]

In the broader context of the U.S. equity markets, healthcare is performing poorly, particularly among large-cap medtech and services companies. At the same time, life sciences and biotechs are outperforming, leading to diverse outcomes for investors.

• IPO activity [15:20]

IPO volumes have rebounded after some disappointing years. Deal flow has centered on oncology, I&I, and CNS.

• Political impact [24:15]

Dealmaking has continued despite uncertainty over the FDA. Tariff policy has been a net positive for U.S. inflows as pharma businesses seek U.S. capabilities. Managing reimbursement and Most Favored Nation pricing remains challenging for some.

Psychedelics are poised for a breakthrough in mainstream psychiatry, with high interest among physicians and patients alike. But does the infrastructure exist to deliver these treatments, given the clinical supervision required for administration? RBC’s researchers have been out in the field to find the answer. Brian Abrahams, Head of Global Healthcare Research, and Leonid Timashev, Biotechnology Analyst, reveal their findings on the practicalities of a psychedelics roll-out.

Key Points

• Patient and physician interest and favorable regulation signal an imminent breakthrough for psychedelics to treat mental ill-health.
• April’s Presidential order on accelerated research and access for veterans with PTSD is also supportive.
• Psychedelics raise challenges for clinical trials, but companies are finding ways to handle these.
• RBC’s research indicates existing clinic infrastructure is equipped to deliver psychedelics with the required clinical supervision.
• Introductions [00:06]

Host Joe Coletti introduces the podcast and guests: Brian Abrahams, Head of Global Healthcare Research, and Leonid Timashev, Biotechnology Analyst. The springboard for discussion is the case made in the recent RBC Imagine report that a transformation in mental health treatment is imminent.

• Pivotal moment for psychedelics [01:06]

Psychedelic drugs have the potential to deliver effective treatment for huge unmet patient need. Expert opinion at an RBC symposium indicates high physician interest, favorable pricing and reimbursement dynamics, limited generic risk, and an increasingly clear regulatory path.

• Executive order on PTSD [05:06]

The recent Presidential executive order, sanctioning accelerated research and access in this field specifically for veterans with PTSD, is another tailwind.

• Risks and challenges [06:22]

Psychedelic drugs raise specific challenges in clinical trials, but these are surmountable. The biggest concern for investors is the capacity to commercialize psychedelic treatments at scale, given the need for clinical supervision.

• Infrastructure for delivery [07:48]

RBC’s research, based on clinics already delivering Spravato, suggests psychedelic treatments could be launched within existing infrastructure. Patients are enthusiastic; clinicians are already preparing for delivery.

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Strong launches, positive sentiment, flowing capital, and favorable macro and policy indicators: the signals remain strong as the biotech sector enters 2026. Yet investors may need to search harder for opportunities this year, according to new RBC research. Brian Abrahams, Head of Global Healthcare Research, highlights some of the classes set for new breakthroughs, and points to the potential tripwires that lie ahead as biotech looks to continue its near-historic rally.

Over the last 18 months, MindMed has undergone an extraordinary transformation. It released compelling data for its LSD-based drug MM120, followed by FDA breakthrough designation for MM120 for the treatment of GAD, and strong financial backing. CEO Rob Barrow outlines the company's ambitious goals and the path to potentially transforming mental healthcare at RBC's Global Healthcare Conference.

Eyepoint CFO George Elston provides insights on the evolving space of retinal disease treatment, focusing on capital allocation, medical innovation, industry engagement and financial prudence.

Paris Panayiotopoulos, Senior Managing Director at Blackstone Life Sciences, shares how the firm’s broad life sciences strategy has been advancing innovation across the life sciences ecosystem in three key ways: late-stage product financing (Collaboration) and new company creation (Ownership), and non-dilutive financing (Credit and Royalties). He explains how Blackstone is bridging the innovation funding gap through high-conviction partnerships with larger BioPharma and MedTech companies, and targeted investment in late-stage trials.

Compass Pathways CEO Kabir Nath believes psilocybin-based therapy could be transformational for patients with treatment-resistant depression—and his company is already preparing to deliver it at scale. Speaking at RBC Capital Markets’ Global Healthcare Conference, Nath shares his vision for Compass and the future of psilocybin therapy for treatment-resistant depression.