Also known as: CGTs
AI is transforming drug discovery across target ID, molecule design and trial optimization. Milestones include regulatory qualification of digital-twin controls and positive Phase 2a data, though 90-95% of candidates still fail.
China has become the dominant source of external drug innovation, with pharma licensing deals reaching $135.7 billion in 2025 and China developing 30% of the world's new innovative drugs. Meanwhile, India is expanding AI use in drug discovery and strengthening its CRDMO and IP infrastructure, though investment gaps persist.
Eli Lilly builds $1.5B stockpile for oral obesity drug orforglipron; study shows GLP-1s cut cancer risk; logistics firms invest in cold chain; and amylin drug race heats up with $19B in deals.
The acute pain market reached $4.5B in 2025, with 98% of pain drugs generic. Voltage-gated sodium channel inhibitors like Journavx offer non-opioid relief, while 39% of the pipeline uses non-small-molecule modalities.
Bayer outlined its 2030 growth strategy at Pharma Media Day 2026, driven by AI partnerships, precision medicine, and a strengthened pipeline. The company aims for mid-single-digit growth from 2027 and 30% margins by 2030.
Global oncology drug spending is projected to reach $467 billion by 2030, driven by novel modalities like ADCs and bispecifics, but growth will slow due to patent expirations for key drugs like Keytruda and Lynparza. R&D is shifting, with novel modalities accounting for 33% of clinical trials in 2025. The industry is also seeing broader innovation and investment, with new blockbuster contenders emerging across multiple therapeutic areas.
New market reports project strong growth in pharmaceutical manufacturing: fill-finish is set to reach $21.04 billion by 2030, ampoule filling/sealing machines to grow at a 5.8% CAGR through 2035, and medical membranes to hit $6.6 billion by 2030.
Novartis finalized a seventh new US facility as part of a $23 billion expansion. The new API site in Morrisville, North Carolina, supports end-to-end US manufacturing across multiple therapy platforms.
More than 30 approved cell and gene therapies carry prices from nearly $1 million to over $4 million, creating fiscal pressure for Medicaid. A federal access model launched in 2024 aims to centralize outcomes-based contracting.
The Consolidated Appropriations Act, 2026 extends the FDA’s rare pediatric disease priority review voucher authority through Sept. 30, 2029. The law also requires a GAO report on the program’s effectiveness.
