“The U.S., Europe and Japan continue to stand out as particularly attractive, offering a compelling combination of current revenue potential and long-term appeal for investors.”
Political and economic developments are simultaneously influencing strategic decisions. In the U.S., changes to tariffs and regulatory frameworks are already impacting import costs and investment planning—highlighting the need for businesses to remain nimble and responsive to shifting external dynamics. However, the degree of impact related to changes to tariffs and regulatory frameworks will vary depending on which sub-sector within life sciences and pharmaceuticals a company is involved in.
Innovation and AI take centre stage
Innovation remains a powerful engine of both commercial success and scientific advancement within the sector. One in three executives identifies the development of new products and services as their top strategic priority, reflecting a continued emphasis on growth through research and development (R&D). For private equity firms in particular, intellectual property—especially in the realms of drug discovery and research tools—has become an increasingly central pillar of value creation.
Artificial intelligence (AI) is playing a transformative role in this evolution. Although only 35% of respondents believe AI will significantly impact their organisation in the near term, nearly 90% have already implemented strategies to support its adoption. In most cases, these AI applications are used internally to enhance efficiency—from optimising research and development processes to improving operational workflows.
In today’s research environments, AI is no longer seen as a futuristic bonus but a fundamental component of the scientific process. Tools like AlphaFold, once considered groundbreaking, are now viewed as standard, underlining how fast the landscape is changing.
“AI is not the future, it is the present—and increasingly, the past. What used to take years in structural biology can now be done in days. This is not a trend. It is a scientific revolution.”
Denis Ribon, Chairman and Managing Partner at ARCHIMED
Still, the pace of technological change brings its own set of challenges. Ethical and regulatory concerns are growing, with two-thirds of executives expressing at least some ethical reservations regarding AI and 86% calling for more robust regulation—a figure notably higher than the global average.
ESG shifts from obligation to opportunity
Environmental, social and governance (ESG) issues are moving higher on the strategic agenda, evolving from a compliance requirement into a potential lever for long-term value creation. While 68% of executives still see ESG compliance as a cost to the business, more than 80% report being mostly or fully prepared to meet emerging regulatory demands.
Key areas of focus include improving supply chain transparency, assessing climate impact and addressing biodiversity. For some firms, ESG is no longer just about meeting external expectations—it’s becoming a strategic growth driver. ARCHIMED, for instance, incorporates ESG into both its investment decisions and value creation strategies, helping portfolio companies reduce their carbon footprints and manage water use more sustainably.
“ARCHIMED believes that ESG is a positive evaluation factor. We have very detailed ESG programmes across our companies and are actively engaged in supporting companies to improve sustainability goals.”
Denis Ribon, Chairman and Managing Partner at ARCHIMED
There is also a growing emphasis on measurable, transparent outcomes. Around half of the businesses surveyed now integrate sustainability data into their financial reporting, though the life sciences sector still lags slightly behind the global average. As expectations evolve, companies are actively building internal sustainability expertise to keep pace and demonstrate meaningful progress.
Resilience becomes a strategic priority
Amid rising global uncertainty, resilience has become a key strategic focus for sector leaders. According to the barometer, 43% of executives cite geopolitical instability as a major threat to growth, while 41% are concerned about economic volatility.
Changes in U.S. policy—particularly those affecting healthcare regulation—are under close watch, with many businesses anticipating potential impacts on market access and compliance costs. In response, companies are developing more robust risk management strategies to strengthen their long-term position.
“The U.S. is committed to being pro-business, so we will likely see more deregulation. To remain competitive, countries will have to reassess their own regulatory approach.”
Strategic resilience is taking many forms. Some businesses are actively reassessing their exposure to higher-risk regions such as China, aiming to de-risk their portfolios and limit exposure to geopolitical conflict. Others are doubling down on organic growth strategies by focusing on strengthening their innovation pipelines, investing in digital transformation and selectively adopting new technologies to stay competitive in a volatile environment.
As global complexity increases, life sciences and pharmaceutical companies are making it clear that their ambitions go well beyond chasing short-term gains. Instead, they are investing in agility, scalability and strategic foresight to ensure they’re prepared for future disruption.
To explore the full findings and download our C-suite barometer life sciences & pharmaceuticals report, visit our dedicated report page.
Contact
Alexandra Bertucat Louwagie Partner - Lyon, France
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