Resilience Through Reinvention: How Pharma is Navigating Uncertainty During Turbulent Times
The pharmaceutical industry is facing heightened risks due to decreased funding, manufacturing uncertainties, loss of regulatory expertise, legal challenges, and tariffs, especially in the U.S. market2.
U.S. market volatility and funding reductions have a global impact, prompting companies to seek international investment and to establish clinical trials outside the United States2.
Supply chain fragility is a top concern, with only about 10% of active pharmaceutical ingredients (APIs) for U.S. prescription drugs produced domestically, making the industry vulnerable to foreign disruptions5.
The U.S. government has responded by enacting policies such as stockpiling APIs and implementing 'most-favored-nation' drug pricing to boost domestic self-reliance and lower costs5.
Manufacturing initiatives are complicated by shifting regulatory environments—especially in medtech, where executives see a greater risk to their 2025 strategy from supply chain issues compared to biopharma1.
Some pharmaceutical manufacturers, like National Resilience, have rapidly expanded post-pandemic but are now downsizing and consolidating operations due to sector-wide financial pressures and the need to streamline operations3.
Companies are increasingly reliant on scenario-planning, agility, and strategic foresight to mitigate unpredictable risks, including inflation, recession, and geopolitical disruptions1.
Other nations are investing to become more attractive locations for clinical trials, and global markets are adjusting to U.S. policy shifts2.
Sources:
1. https://www.deloitte.com/us/en/insights/industry/health-care/life-sciences-and-health-care-industry-outlooks/2025-life-sciences-executive-outlook.html
2. https://www.biospace.com/events/resilience-through-reinvention-how-pharma-is-navigating-uncertainty-during-turbulent-times
3. https://www.biopharmadive.com/news/national-resilience-manufacturing-operations-wind-down/750246/
5. https://www.whitehouse.gov/fact-sheets/2025/08/fact-sheet-president-donald-j-trump-ensures-american-pharmaceutical-supply-chain-resilience-by-filling-the-strategic-active-pharmaceutical-ingredients-reserve/