Each week we highlight five things affecting the life sciences industry. Here’s the latest.
Funding freeze sparks chaos in U.S. scientific research
- The Medicine Maker reports that a temporary federal funding freeze initiated by the Trump administration caused panic among researchers and nonprofit organizations, leading to lawsuits and disruptions in scientific projects.
- Although the memo ordering the freeze has been rescinded, confusion remains, with institutions like the National Institutes of Health and the National Science Foundation pausing grant reviews and payments, forcing some universities to advise faculty not to spend approved funds.
Biotech IPOs demand profit path amid rational market
- According to Fierce Biotech, the current initial public offering environment for biotech companies is described as “rational,” with investors favoring firms that demonstrate a clear pathway to profitability.
- This shift reflects a more measured approach compared to previous years, emphasizing sustainable business models and financial viability.
Pharmaceutical companies exercise caution amid heightened scrutiny
- In response to increased scrutiny and regulatory measures, pharmaceutical companies are moderating their drug price increases, with a median rise of 4% at the start of 2025, slightly below the previous year’s 4.5% increase, per Fierce Pharma.
- The Inflation Reduction Act, which mandates rebates for price hikes exceeding inflation, is a significant factor influencing this restraint as companies aim to avoid penalties and public criticism.
Potential impact of RFK Jr.’s nomination on U.S. health policies
- Robert F. Kennedy Jr., known for his vaccine skepticism, sat for his hearing with the Senate Finance Committee, as he aims to serve in the position of U.S. health secretary, granting him significant authority over areas such as food safety, vaccinations and pharmaceuticals.
- His appointment could lead to substantial changes in public health policies, particularly concerning vaccine programs and regulations on substances like fluoride, reports BBC.
CROs anticipate continued slowdown in Big Pharma R&D spending
- According to Fierce Biotech, while large pharmaceutical companies increased their R&D spending by 9.7% in 2024, projections for 2025 indicate a modest rise of only 2.2%, suggesting a cautious approach to research investments.
- This deceleration in spending growth may lead contract research organizations to prepare for sustained reduced demand from major pharmaceutical clients, potentially impacting their operations and financial performance.
For more insights in life sciences, check out RSM’s industry outlook.
