Inside the LSX Biotech Playbook: 11 Strategic Insights

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At the LSX Conference in London, we heard directly from biotech, VC, and pharma leaders. Here are the key strategic takeaways shaping todays healthcare landscape. 

Funding

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Series A is bigger, rarer, and more demanding  

• Average Series A rounds now range from $70M–$100M, reflecting the cost of innovative R&D. Fewer rounds mean higher stakes. 

• Deals are increasingly syndicated across multiple funds, requiring clear alignment and communication. 

• Investors demand de-risked assets: strong translational data, validated targets, and experienced operators (particularly in clinical and regulatory domains) at the helm. 

Modality-specific capital still flows—if the story is focused

• Despite broader market corrections, investor appetite remains strong in high-conviction areas: 

  • Personalized oncology (e.g., BioNTech), 

  • Next-gen small molecules (e.g., Sycona), 

  • B and T cell therapies (e.g., Kurma-backed platforms). 

• AI may dominate the headlines, but it's not the only magnet—modality depth matters. 

MoA clarity and a solid TPP are must-haves 

• Clear mechanism-of-action is essential to anchor valuation discussions and reduce diligence friction. 

• A compelling and realistic Target Product Profile shows strategic forethought, accelerates partnering, and signals commercial viability. 

Late Stage / IPO

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IPOs are later and harder—act accordingly

• Treat IPOs as late-stage milestones, not exits. Most biotechs will require Series C or D rounds first. 

• Post-Phase II is not enough—commercial validation is expected before going public. 

• Financial discipline is essential: 

  • Maintain ≥6 months of cash runway, 

  • Limit convertible notes to ≤10% of market cap, 

  • Keep alternative structures (royalty deals, etc.) ≤25% to preserve equity value. 

• At this stage, the CEO must be financially adept—not just a scientist or clinician. 

• Losing the CMO is a critical failure risk and should be avoided at all costs. 

Operational strength is the true differentiator (Late Stage/IPO) 

• Boards and investors prioritize execution capability: 

  • Cohesive capital plans, 

  • Operational discipline, 

  • Governance maturity. 

• Scientific merit opens the door; execution keeps it open. 

Strategy

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Strategic optionality is essential—not optional

• Over 50% of blockbusters emerge from M&A and licensing, but the return on investment (ROI) from M&A activities has decreased in recent years. 

• Pharma increasingly prefers licensing over full buyouts, emphasizing flexibility and control. 

• Biotechs must develop a BD strategy and clear TPP early. 

• Deals structured to retain manufacturing or territory rights deliver higher value—$280M vs. $148M on average. 

Pivot capacity must be structurally embedded

• Capital efficiency remains a core expectation—lean into the "European model": milestone-tied burn, rigorous resource allocation. 

• Reset valuation expectations to current reality—2024–25 comps, not 2021 peaks. 

• Build pivot readiness into the roadmap: use decision trees and scenario planning to redirect assets without derailing momentum (e.g., Poolbeg’s shift to oncology). 

China: competitive threat and opportunity

• China is no longer just a “me-too” market—it’s a growing innovation hub, especially in cell therapies and ADCs. 

• Simultaneously, China is a source of low-cost licensing and CDMO partnerships, especially valuable to European biotechs seeking cost control. 

• Scout actively and early—top-tier Chinese assets are becoming globally competitive. 

Resilience

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Resilience through collaboration

• Multi-territory co-development and co-commercialization reduce burn and distribute execution risk. 

• Regional licensing and royalty-sharing structures can preserve upside while offloading cost—especially effective in China-Europe linkups. 

Incentives must reflect market constraints

• Leadership KPIs should now tie to: 

  • Capital deployment efficiency, 

  • Pivot agility, 

  • Partnership execution. 

• Move away from vanity metrics (headline valuations) toward durable value creation. 

MedTech

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Digital transformation as an embedded enabler

• AI is reshaping healthcare delivery—not just in R&D, but also clinical design, regulatory pathways, and patient stratification. 

• Cross-disciplinary medtech innovation is emerging from the convergence of software, hardware, and connectivity, improving diagnostics, implants, and therapeutic devices. 

• Position AI and digital tools as platform capabilities that enhance precision and reduce time-to-market—not standalone investment narratives.