Kyle Berkman, Rachna Khosla and Greg Zoll Share Insights on the Healthcare, Biotech and Life Sciences Landscape in 2025
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The Healthcare, Biotech & Life Sciences Roundtable panel is produced by the LA Times Studios team in conjunction with Amgen; CBIZ; and Intrepid Investment Bankers.
Treatment modalities and care best practices aside, the healthcare business sector – perhaps more than any other category of industry – has been forced to reassess, restructure and remodel itself to accommodate the unpredictable and challenging times we have faced over the last few years due to unprecedented changes and challenges.
Decision makers in the healthcare, biotech and life sciences space continue to be faced with a number of challenging questions, yes, but it appears that many of the answers to those questions – and many of health’s latest solutions – come in the shape of new technological innovations. Are the advancements that came about due to necessity here to stay? And what about telemedicine and how it has changed the treatment landscape? What other innovations are on the horizon?
To take a closer look at the latest trends and modalities in the business of healthcare, biotech and life sciences, we have turned to three of the region’s leading experts who graciously weighed in for a discussion and shared insights from three diverse perspectives on the state of healthcare in 2025.
Q: What are the most significant market trends currently reshaping the healthcare, biotech and life sciences industries in 2025?
Rachna Khosla, SVP, Business Development, Amgen: Convergence, the linking of biology, technology and real-world data, is fundamentally changing healthcare and our ability to develop transformative medicines to serve patients who are facing serious diseases. This convergence is moving us from an old paradigm of reactive care to one that focuses on prediction and prevention. This is a transformative time for the healthcare industry. Artificial intelligence and machine learning play a key role in accelerating drug discovery, clinical development and regulatory processes. At the same time, collaboration is becoming more vital than ever. The greater Southern California region has emerged as a hub for translational science, inclusive research and advanced biomanufacturing. This momentum is powered by partnerships between academic institutions, startups and companies like Amgen. Amgen is at the center of advancing science and connecting local innovation to impact patients globally.
Greg Zoll, Managing Director, CBIZ: We’re seeing a big shift across the healthcare, biotech and life sciences sectors. AI and data are driving smarter decisions, but companies also face pressure from payers and regulators. At CBIZ, many clients are balancing innovation with the need to be cost-effective and compliant. I’m seeing more partnerships between tech and biotech firms and a growing interest in personalized care and digital tools. Meanwhile, funding environments are tighter, so companies are being more selective with their pipelines. Those that can adapt quickly and focus on outcomes are in a strong position heading into the second half of 2025.
Q: How are advances in AI and machine learning transforming drug discovery and personalized medicine?
Kyle Berkman, Director, Intrepid Investment Bankers: While much of the initial promise of AI in healthcare revolved around AI’s ability to accelerate drug discovery, we have already seen a tangible impact at the clinical level. Numerous studies have confirmed that AI does a better job at complex disease diagnosis than human doctors, and medical software/EHR providers are racing to incorporate these capabilities into clinical workflows to establish better guardrails and improve diagnostic accuracy. While more mundane, we have also seen AI deliver remarkable phone, SMS and chat customer service support that dramatically improves patient experience and allows medical professionals to focus on higher value tasks.
Khosla: Artificial intelligence and machine learning are transforming drug discovery and personalized medicine by improving speed, accuracy and efficiency across every stage of the drug development process. AI and machine learning help accelerate target identification, enhance protein-based drug design and improve clinical trial execution and patient enrollment. AI is also streamlining regulatory processes and safety monitoring, allowing large clinical datasets to be managed with greater ease. Amgen leverages these capabilities to develop therapies with greater precision and clinical impact for patients facing serious diseases, while collaborating with academic and industry partners across Southern California and beyond to support personalized medicine innovations. Our work contributes to a broader vision: global medicine tailored to individual needs. AI’s power lies not just in speed but in the ability to scale precision – something Amgen is actively deploying through integrated platforms that bring therapeutic innovation to patients around the world.
Zoll: AI and machine learning are cutting down the time and cost of bringing drugs to market. Companies can now analyze huge amounts of data to find promising compounds faster and identify which patients will most likely benefit. That’s changing how we think about trials and treatment. At CBIZ, we’re seeing more firms use AI not just in discovery but also in improving patient targeting and predicting outcomes. It’s not just about the tech – it’s about how teams integrate it into the entire R&D process to be faster, more accurate, and ultimately, more effective.
Q: What sectors of healthcare are attracting the most interest from investors right now?
Berkman: Broadly speaking, behavioral health remains a particularly attractive subsector for many healthcare investors, from pure-play mental health to substance use disorder and Applied Behavioral Analysis (ABA) providers, driven by continued tailwinds across those areas. Social media in particular has led to an astonishing rise in cases of anxiety and depression, especially among children and teens, which has driven a tremendous need for providers that can offer a sufficient level of care to address these issues, often more intensive than weekly talk therapy. In ABA, we are seeing significant interest in providers who can manage turnover, deliver high levels of utilization and work through patient backlogs.
Q: How has the current economic climate impacted venture capital and private equity interest in biotech and life sciences?
Zoll: The economic environment has made fundraising more competitive, especially for early-stage biotech and life sciences companies. Interest rates and market volatility have slowed down deal-making, but there’s still money out there – investors are just more selective. I’m seeing VCs and private equity firms looking for companies with strong data, clear milestones and efficient use of capital. It’s no longer just about science; it’s about execution and a clear path to revenue. Companies that can show both are still getting funded, but the bar is higher than in recent years.
Q: What company attributes are driving premium valuations for healthcare businesses right now?
Berkman: Growth and scalability. When a healthcare business has a proven track record of consistent growth paired with the infrastructure to support continued growth and an underlying model that allows for scalability, we tend to see the most attractive valuations. Other important attributes include diversification, from both a revenue and supplier standpoint, as well as, in the case of B2B healthcare businesses like pharma services, recurring or sticky customer relationships. While often not on the balance sheet, assets that can drive outsized value include a well-developed management team, proprietary software, hard-to-get payor contracts and contracted backlogs that drive revenue visibility.
It’s no longer just about science; it’s about execution and a clear path to revenue. Companies that can show both are still getting funded, but the bar is higher than in recent years.
— GREG ZOLL
Q: What specific healthcare innovation verticals do you see rising in California and the life science industry as a whole?
Khosla: California is a leading hub for healthcare innovation, with five verticals rapidly advancing: healthy aging, next-generation biologics, digital-first care, health equity and sustainable biomanufacturing. At Amgen, we’re deeply invested in all of them. These five verticals are also reflected within the global life sciences industry. We are seeing AI, genomics, and real-world data playing a central role in meeting these challenges. Novel innovation is accelerated by strong collaboration among academic institutions, startups and industry leaders. Amgen supports this ecosystem through efforts like Amgen’s Golden Ticket program, which provides critical support to early-stage biotech companies in Southern California. We also collaborate with local entrepreneurs and venture capitalists to help foster new companies focused on finding solutions to serve patients who are facing serious diseases.
Q: What do investors now look for when funding early-stage healthcare or biotech startups?
Zoll: Investors today want more than a good idea – they want proof it can work and a plan to scale it. In the healthcare and biotech space, that means clear data, solid IP, a realistic regulatory path and leadership that knows how to execute. Early-stage companies get more attention when they can tie their science to a real market need and show how they’ll get there. It’s also important to be thoughtful with spending – capital efficiency is a big focus. The more clarity a startup brings to the table, the better its odds.
Q: How has the pharmaceutical landscape changed in recent years?
Khosla: This is a transformative time for the healthcare landscape. Artificial intelligence and machine learning play a key role in accelerating drug discovery, clinical development and regulatory processes. At the same time, collaboration is becoming more vital than ever. The greater Southern California region has emerged as a hub for translational science, inclusive research and advanced biomanufacturing. This momentum is powered by partnerships between academic institutions, startups and companies like Amgen. Amgen stands at the forefront of this evolving landscape – advancing science, embracing data-driven approaches and connecting innovation to improve patient outcomes globally.
Q: What process and performance improvement measures should pharmaceutical/life science firms be taking in terms of quality control management/records management and methods of gathering and recording data?
Zoll: Life sciences companies are under growing pressure to tighten their processes, especially around quality and data management. We are seeing many of our clients move toward digital tools that streamline how they track, document and verify their work. It’s more than staying compliant – it’s about being ready for audits, inspections and scaling operations. Clean, reliable data is becoming the foundation for performance. When systems talk to each other and people have access to real-time insights, teams can move faster and avoid costly errors. That kind of operational discipline is becoming a competitive edge in the industry.
Today, convergence, the linking of biology, technology and real-world data, is fundamentally changing healthcare and our ability to develop transformative medicines to serve patients.
— RACHNA KHOSLA
Q: How about the insurance landscape? What changes are you seeing there?
Berkman: Investors have burned a lot of calories fretting about potential Medicaid cuts, either through direct funding cuts or decreased enrollments. While the ‘Big Beautiful Bill’ does call for cuts that could reduce nationwide enrollment, our experience tells us that high-quality providers with broad payor coverage will continue to thrive. Providers who build their businesses around niche payors or geographies with above-market reimbursement will always be exposed to changes in reimbursement rates. However, providers with nimble management teams who have built efficient businesses with steady margins at market rates remain well-positioned.
Q: What accounting issues are keeping health sector executives up at night?
Zoll: There’s no shortage of accounting challenges keeping healthcare leaders up at night. Revenue recognition, licensing deals and stock-based compensation have complex rules. At CBIZ, we’re seeing more companies revisit their treatment of milestone payments and collaborative agreements, especially in early-stage biotech. There’s also an increased focus on internal controls and going concern evaluations, especially as funding timelines stretch. Many firms are trying to scale quickly, which puts stress on their finance teams and systems. Getting the technical side right isn’t just about compliance – it builds trust with investors and avoids headaches down the road.
Q: What are consumers looking for and demanding from their healthcare experience today and how is that affecting the business of healthcare?
Berkman: For many years, customer service levels in healthcare lagged significantly behind those of other industries. Accessing care was a chore to be dreaded, not an act of self-care to be celebrated, from long wait times, duplicative paperwork and unpleasant waiting rooms to surprise bills. Increasing consumer adoption of telehealth models and the success of tech-enabled, consumer-savvy cash-pay healthcare providers have turned customer satisfaction levels of the hottest consumer brands into table stakes for healthcare companies. Scaled providers that can’t offer speed, privacy, personalized service, real-time connectivity and instant service delivery are dead in the water.
Q: What advice would you offer a newly-launched startup business in the healthcare sector?
Zoll: If you’re just getting started in healthcare, I advise treating the business side as seriously as science. Too many early-stage companies wait too long to build the right financial systems or seek out expert advice. Focus on setting up smart structures for equity, taxes and compliance early on – those decisions really matter down the line. Build a solid foundation of trusted service providers (legal counsel, accounting and tax advisors, banking partners, etc.) to support scientific progress and business execution. Never underestimate the importance of the “next round of funding.” Plan, prepare and have a backup plan. As the road to commercialization continues to be redefined with technology, it’s still long and can be exponentially costly if not properly managed. Lastly, clarify how your product fits into the bigger healthcare landscape. Strong science is critical, but investors also want to see that you have a plan, a path and the right team behind it.
Numerous studies have confirmed that AI does a better job at complex disease diagnosis than human doctors, and medical software/EHR providers are racing to incorporate these capabilities into clinical workflows to establish better guardrails and improve diagnostic accuracy.
— KYLE BERKMAN
Q: Looking to the future, what health-related trends do you think we can expect to come along within the next five years?
Khosla: We will continue to witness an aging population with patients facing serious, often chronic diseases. Yet the industry will continue to innovate, bringing novel medicines and precision medicine for patient care. Today, convergence, the linking of biology, technology and real-world data, is fundamentally changing healthcare and our ability to develop transformative medicines to serve patients. This is moving us from an old paradigm of reactive care to one that focuses on prediction and prevention. This transformation will not only accelerate the development of novel therapies but will also improve the precision and effectiveness. We will also see the rise of integrated global-local clinical trial models and scalable digital therapeutics for chronic conditions. Building a diverse, STEM-ready workforce will also be essential. Amgen is actively preparing for this future by piloting and scaling innovations that support global access and impact.
Berkman: For as long as humans have been taking blood pressure measurements, people have fantasized about being able to access real-time data about our bodies to truly understand our health risks and make changes to diet and exercise protocols to optimize our health and wellness. Never before have consumers had so many tools to understand such a complete picture of their health. We expect that trend to accelerate as businesses that help individuals track their biomarkers over time and identify early-stage cancer and other health risks through non-invasive means take center stage in terms of how people experience healthcare.
