FTI Survey: Healthcare & Life Sciences Optimism, M&A and AI to Drive 2025 Growth

FTI Consulting’s Healthcare & Life Sciences Outlook Survey surveyed 250 U.S.-based decision-makers from corporate communications, investor relations, public affairs, business development, and marketing roles in healthcare and life sciences companies. Conducted online between September 24 and October 9, 2024, the survey provides insights into industry optimism, challenges, and investment priorities.

Key Findings

• Renewed Optimism and Financial Confidence
  The healthcare and life sciences (HCLS) sector is entering 2025 with renewed optimism. 79% of respondents expressed confidence in the industry, an 11% increase from 2024. Expectations for organizational financial performance have also risen, with 86% predicting improved results.

• Therapeutic Investment Focus
  Industry leaders are emphasizing long-term growth through investment in specific therapeutic areas. GLP-1-based obesity treatments and immuno-oncology therapies are emerging as key targets for M&A in 2025. Respondents identified these top five therapeutic areas for future investments: immunology and inflammation (38%), infectious diseases and vaccines (36%), respiratory (34%), cardiovascular, renal, and metabolic diseases (32%), and neuroscience (32%).

• AI as a Driver of Efficiency and Innovation
  AI remains a transformative force for the industry. 80% of respondents are optimistic about its potential to streamline operations and enhance drug development. 77% believe AI can create efficiencies within drug development processes, while the same percentage view it as valuable for operations outside R&D. Transparent communication and consistent frameworks are essential for trust and effective AI implementation.

• M&A and Capital Access
  M&A activity is expected to rebound in 2025, with 66% of respondents predicting a surge in acquisitions. Focus will likely be on late-stage assets in oncology, neurology, and rare diseases. IPO activity is also anticipated to increase, with 61% of respondents expecting improved fundraising conditions.

• Political and Regulatory Challenges
  Political uncertainty remains a concern for 22% of respondents, particularly in light of the second Trump administration. Leaders expect revisions to the Inflation Reduction Act and an emphasis on deregulation to promote market-driven competition. Before the election, 68% of respondents believed a Harris administration would benefit the industry, while 58% saw potential advantages under a Trump administration.

• Cybersecurity Concerns
  Cybersecurity incidents are a significant risk for the industry, with 59% of respondents citing malware and ransomware as vulnerabilities. Privacy violations (54%) and phishing (46%) were also highlighted. 79% expressed confidence in their preparedness, with increasing investments in crisis simulations and communications playbooks.

• Budget Allocation and Communications Priorities
  48% of respondents plan to increase budgets in 2025, with 47% allocating funds to R&D. Social and digital communications will see increased focus (70%, up 18% from 2024), alongside crisis management and reputation building (52%), stakeholder mapping (39%), and thought leadership (39%).

• Environmental, Social, and Governance (ESG)
  55% of respondents identify ESG as a medium reputational risk, primarily due to concerns over greenwashing (48%) and political backlash (46%). Health equity (42%), data security (38%), and affordability (36%) remain key ESG focus areas, reflecting a shift toward mainstream healthcare-centric themes.

The report highlights a shift toward optimism following years of tempered expectations. Respondents anticipate a resurgence in M&A activity, fueled by market-friendly policies and favorable economic conditions. AI is seen as a key enabler for innovation, particularly in drug discovery. The findings also underscore heightened awareness of cybersecurity risks and a need for proactive investments in preparedness.

To capitalize on the opportunities in 2025, the survey recommends:

• Robust strategic communications to articulate value propositions and engage stakeholders.
• Monitoring AI developments to ensure effective implementation and trust-building.
• Prioritizing cybersecurity to mitigate operational disruptions and reputational risks.

With growing interest in immunology, oncology, and advanced biotechnologies, companies are advised to focus on differentiated positioning and innovation to attract investment and maintain competitiveness.

The survey is available to download at FTI Consulting website.

Topics: Bioeconomy & Society