Read our Pharma Services Market Update for our sector insights. The biopharma funding environment has markedly improved (vs the first half of 2023) with services and tech vendors broadly reporting high single digit growth in RFP activity. After a period of heavy focus by biopharma sponsors on re-prioritizing R&D pipelines in 2022 and 2023, we see the life sciences industry as (more) stabilized and positioned to move forward with projects. Separately, we see U.S. based pharma services companies benefiting from increasingly aggressive foreign policy actions taken by the Biden administration towards countries like China and Russia. We are particularly watchful for ongoing updates to the pending legislation such as the BIOSECURE Act, which has put a premium on U.S.-based biopharma manufacturing and storage capacity — as well as on domestic services and tech providers.

Key Takeaways

1. Greater Focus on Patient-Centricity in Clinical Trials. There has been a significant increase in focus on patient-centric approaches to clinical trials, ensuring better access to treatments and improved patient experiences, as the industry continues to be challenged by patient enrollment and retention.
2. Artificial Intelligence and Data Capabilities. Advances in artificial intelligence and data science are impacting the entire pharma value chain in areas such as drug discovery, clinical trial design, supply chains, and commercialization. We see access to data assets and the ability to integrate data-driven insights into traditional workflows as key competitive differentiators in the coming years.
3. Manufacturing Capacity and Quality. Capacity and quality are paramount. The past year has seen crippling drug shortages and quality issues. There is a glut of capacity in some areas, like CGT and OSD, while injectable fill/finish capacity remains scarce.
4. Consolidation and Integration, or Specialization? Pharma services providers face an ongoing need to balance integrating services (such as CROs, CDMOs, and logistics providers) and specializing. Finding the right mix of expansion and specialization is essential for efficient operations and successful outcomes as outsourced service providers adapt to meet the needs of drug sponsors

In the dynamic healthcare industry, staying ahead of trends is essential for informed decision-making and seizing opportunities. Please reach out to our research team for more information: research@bourne-partners.com

Compare to our Q2 2024 Pharma Services Sector Snapshot here.