Each week we highlight five things affecting the life sciences industry. Here’s the latest.
200% drug tariffs loom, but rollout may be delayed
- Proposed tariffs as high as 200% on imported pharmaceuticals loom, with a one- to one-and-a-half-year grace period to allow companies to adjust, reports CNBC.
- Industry groups indicated the move could raise costs and disrupt supply chains, while analysts noted the plan’s uncertainty and lack of immediate implementation.
Medtech targeted in escalating China–EU trade dispute
- According to MD+DI, China has barred European medical device firms from selling to its government in response to European Union restrictions on high-value Chinese medtech bids.
- The EU’s rules limit Chinese participation in public contracts and mandate that winning bids contain less than 50% China-sourced components.
Medtech M&A has slowed, but could rebound in late 2025
- Medtech acquisitions dropped sharply after early 2025, likely due to economic uncertainty and concerns over tariff strategy, which affected company valuations and deal timing, as reported by MedTech Dive.
- Analysts expect mergers and acquisitions to pick up later in the year as firms adapt to trade headwinds and pursue strategic growth opportunities, despite ongoing uncertainty.
Sweeping bill reshapes health care, favors pharma
- The recently passed One Big Beautiful Bill Act contains many aspects that directly or indirectly impact the life sciences industry, including federal health care cuts, exemption of certain rare disease drugs from Medicare price negotiations and restoration of immediate expensing of domestic research and development costs.
- The bill did not address the Most Favored Nation drug pricing policy nor pharmacy benefit manager reform, reports Medical Marketing and Media.
Deal boosts U.S. firm’s respiratory portfolio
- Reuters reports that Merck will acquire UK-based Verona Pharma for approximately $10 billion to strengthen its pipeline in respiratory treatments.
- The move comes as Merck prepares for the upcoming patent expiration of a top-selling cancer therapy.
For more insights in life sciences, check out RSM’s industry outlook.
