Welcome to the 2023 edition of the United States Life Sciences industry report.

In many ways, 2022 was a turning point for the US life sciences industry. After having experienced a record number of deals, IPOs, and drug approvals in 2020 and 2021, the past year was marked by post-pandemic recovery, macroeconomic shockwaves, and regulatory changes that industry leaders fear could cool the industry’s expansion going forward.

Yet, positive signs point toward another year of growth for the life sciences industry. With large pharma firms on the hunt for new technologies to bolster their drug pipelines, deal-making and M&As have already seen an uptick in Q1 2023. And as the giants go on the hunt for biotechs’ most promising discoveries, that influx in capital – estimated at over US$1 trillion – will benefit investment throughout the whole industry. Companies are also adapting their long-term strategies to consider the future effects of the Inflation Reduction Act on the industry. The latter was received with mixed feelings by life sciences leaders, who, when it came to negotiating drug prices that will affect their margins, recalled the importance of ongoing R&D expenditure to prevent unsighted events, such as Covid-19.

Biopharma and biotechs can rely on multiple allies on the road from discovery to commercialization: the CDMO, CMO, CRO, and services segments of the industry have never looked so healthy. This segment continued to strengthen in 2022, as the onshoring of manufacturing capabilities in the US, the push for green chemistry, and the need for skilled labor to industrialize promising technologies such as cell and gene therapies continue to drive for the industry.

As market uncertainty will undoubtedly remain throughout 2023, multiple headwinds have not deterred an industry that is known for its innovation and resilience, but mostly for the strength of its science. With the return of international travel and trade events, the industry is poised to witness a supercharged period for partnering, strategic alignment, and contract agreements in the next 18 months. For life sciences firms – focused on cell and gene therapies, immune-oncology, or pioneering CNS breakthroughs – the focus will be on embracing digitalization, navigating a changing regulatory and financial landscape, and tackling health inequalities. As diseases know no boundaries, 2023 will also likely bring about broader global cooperation, as US stakeholders continue to strengthen their global reach through academic, public, and private partnerships.

Beyond East and West dominance, the traditionally polarized US life sciences industry is now more integrated than ever. This report provides analysis derived from over 80 interviews with the industry’s most insightful, thought-provoking, and authoritative executives across the life sciences value chain, spanning 19 US states, and with firms from three continents with large footprints in America. We would like to warmly thank these leaders as well as our association partners at BioNJ, MassBio, and Biocom California, and hope that you enjoy the read.