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NEW YORK — Life sciences executives are entering 2025 with data-driven optimism, according to Deloitte’s newly released “2025 Life Sciences Outlook.” Survey findings from 150 global C-suite executives show that 75% remain upbeat about the year ahead, with 68% anticipating revenue increases and 57% expecting margin expansions.
"The life sciences industry appears poised for significant transformation in 2025, driven by digital advancements and scientific innovations. Despite competitive pressures and business volatility, most global life sciences executives are optimistic about the future," said Pete Lyons, U.S. Life Sciences Leader at Deloitte.
Key Takeaways:
- Pricing and access to drugs and medical devices seen as the most significant issue facing the life sciences industry:
- Nearly half of those surveyed (47%) expect pricing and access to significantly affect their strategies in 2025 and another 49% expect a moderate impact.
- 37% view competition from generic drugs and biosimilars as a top trend, while 30% cite the patent cliff as a significant concern.
- 77% of executives expect M&A to increase in 2025.
- Digital Transformation expected to have major impact on organizational strategies in 2025:
- 60% of executives see gen AI/digital transformation as key emerging trend for 2025.
- Nearly 60% plan to increase gen AI investments across the value chain.
- AI investments in biopharma could unlock 11% in value relative to revenue across functional areas.
- Declining R&D productivity is a significant industry concern:
- Half of the surveyed medtech executives, and 56% of the biopharma executives said their organizations need to rethink their R&D and product-development strategies over the next 12 months.
- Nearly 40% of all survey respondents emphasized the importance of improving R&D productivity to counter declining returns across the industry
- Resilience in the Face of Change:
- About one-third of survey respondents expressed concern about potential changes to U.S. regulations in 2025, while 37% are apprehensive about global regulatory changes and geopolitical uncertainties.
- 36% of executives surveyed are also evaluating the potential impact of unpredictable challenges such as inflation, economic recession, and disruption in supply chain and manufacturing.
- Evolving Customer Expectations Influence Strategy:
- 36% of C-suite executives indicated that improving customer experience, engagement, and trust was very important and 29% said they were prioritizing investments in a customer-engagement strategy.
- 32% of biopharma respondents considered investments in customer engagement and enabling technologies a priority for 2025, whereas only 24% of medtech respondents shared these views.
