Graeme Hurst
Deal Advisory Partner - Transaction Services
As we look ahead to 2025 for the Life Sciences sector, the key drivers of growth and activity seen in recent years are expected to continue. These include an increase in global Research and Development (R&D) investment, growing demand due to ageing populations and the rise of chronic diseases, and the development of breakthrough therapies such as cell and gene therapy. This, combined with a more stable macroeconomic backdrop, provides a platform of opportunity for the Life Sciences industry in 2025.
Further trends are emerging as we move into 2025, which successful businesses will prepare for and adapt to as they progress through the year.
In the US, regulatory measures aimed at controlling drug prices will remain a key focus, especially following the recent election results. New policies, in addition to the Inflation Reduction Act, are expected to reshape market access strategies and pricing dynamics for pharmaceutical companies, with significant implications across the global market.
After a challenging period, funding for Biotech and Biopharma is showing signs of resurgence. Venture Capital (VC), M&A, and IPO activity are expected to increase as investor sentiment recovers and scientific breakthroughs attract new capital.
GenAI is anticipated to disrupt the Life Sciences sector. Current use cases include accelerating the drug discovery process, streamlining regulatory approvals and the improving supply chain resilience. Businesses should look to make GenAI a strategic priority while being mindful of the associated risks, such as the pace of regulatory change and data privacy concerns.
2025 will see many blockbuster drugs reaching patent expiration, exposing pharmaceutical companies to revenue losses. This will continue to drive urgency for companies to plug pipeline gaps through increased M&A activity, partnerships, and investment in R&D for innovative therapies.
Personalised medicine, driven by advancements in genomics and precision diagnostics, will continue to grow throughout 2025. However, mass-market treatments, particularly GLP-1 receptor agonists for obesity and diabetes, will likely dominate headlines and commercial priorities as demand surges for these widely applicable therapies.
Continued improvements in underlying funding dynamics, alongside a stabilising macroeconomic backdrop, give us confidence that the M&A environment in Life Sciences will improve. Businesses will need to remain agile and responsive to the emerging trends discussed above to navigate the evolving landscape and to capitalise on new opportunities.
