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.

Every year, flu vaccine manufacturers have to guess what strains to target next season, with varying success. Cidara Therapeutics believes it may have a better alternative. President and CEO Jeff Stein explains how Cidara's laser-like focus on developing CD388, a single-dose antiviral targeting all flu strains, has brought the 40-person company on the verge of a public health breakthrough.

Cidara announces positive topline results from its phase 2b NAVIGATE trial evaluating CD388

President and CEO Jeff Stein Bio

Pravin Dugel, CEO of Ocular Therapeutix provides insights into existing treatments and future product candidates for retinal diseases, underlining the unique challenges, opportunities and innovations in this evolving landscape.

www.ocutx.com

Pravin U. Dugel, MD Biography

A surgeon in burns reconstruction, Matt Klein swapped the operating room for the equally high-pressure environment of drug development. In this episode of Pathfinders in Biopharma, he sets out the vision for the company he now leads, PTC Therapeutics – a pioneer in the field of RNA therapies, now powering towards profitability with treatment candidates for a host of rare diseases.