The biopharmaceutical industry is grappling with a complex mid-year outlook in 2025, as accelerating innovation collides with mounting policy and market uncertainty. From US drug pricing reforms to global tariff tensions, sentiment has taken a hit—reflected in a 16 per cent drop in industry optimism. Amid tightened funding, strategic partnerships are emerging as a critical lever for resilience and growth, says GlobalData.
GlobalData’s report, “The State of the Biopharmaceutical Industry- 2025 (Mid-Year) Edition,” captures a moment for the global biopharmaceutical sector, where the pace of innovation is clashing with a level of uncertainty across markets and policy.
Biopharmaceutical industry professionals expressed a lower level of optimism about the industry’s growth prospects in May 2025 compared to recent years*.
The shift in optimism regarding the industry has decreased by 16 per cent compared to the start of the year. This is tied to several factors, such as the New US administration bringing about several changes. These include policy changes, particularly around drug pricing reforms in the US under the Most Favoured Nation (MFN) executive order, and healthcare reforms. Additionally, the potential for a reduction in profits due to US tariffs, other countries’ retaliatory tariffs, and the risk of pharma-specific tariffs. As well as strained Sino-American relations, leading to additional uncertainty.
Hannah Hans, Head, Pharma Strategic Intelligence, GlobalData, comments, “The biopharmaceutical industry will need to continue rethinking models from manufacturing to market access, especially under the expanding shadow of the Inflation Reduction Act (IRA) and FDA shifts.”
In the same survey, 37 per cent of biopharmaceutical industry respondents believed enhanced industry partnerships were going to be the best way forward to mitigate a downturn in biotech funding in the next 12 months. This reflects a shift towards partnership and licensing agreements as an alternative source of capital, with the increase in upfront payments over the past few years signalling constrained demand for deal-making
Hans concludes, “The winners will be those who align innovative science with geopolitical agility and financial discipline. The capital, talent, and science are still here, but the premium now lies in integrating these strategies, as well as early validation and credible paths to market.”
*GlobalData’s surveyed a total of 107 GlobalData Biopharmaceutical clients and prospects, which was fielded from April 16 to May 29, 2025.