University of Kwazulu-Natal

Ey 2025 Biotech Beyond Borders Report Biopharma Focus On

Bonisiwe Shabane
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ey 2025 biotech beyond borders report biopharma focus on

EY helps clients create long-term value for all stakeholders. Enabled by data and technology, our services and solutions provide trust through assurance and help clients transform, grow and operate. Discover how EY insights and services are helping to reframe the future of your industry. How digital twin technology powers the future at Xcel Energy How Bristol Myers Squibb overhauled working capital to fund its future How St James’s Hospital's journey to cloud transformed cancer care

Some 39% of biotechs assessed in 2024 were set to run out of cash within 12 months, according to EY’s latest industry report published on Wednesday. This marks the highest level this financial health metric has reached in at least six years, up from 31% in 2022 and 2023, and just 18% in 2021. “That number keeps creeping up,” Arda Ural, EY Americas life sciences leader, told BioSpace. The startling statistic reflects the “really tough funding environment” facing the sector, Ashwin Singhania, EY-Parthenon partner/principal of life sciences strategy, said during an exclusive roundtable event on June 12. Those most likely to survive the prolonged capital drought are taking a disciplined approach, Ural said. This includes rethinking investor engagement, tying funding to clearer milestones and narrowing focus to lead assets.

Some companies are also exploring non-dilutive options like royalty deals and leaning more on outsourcing to extend runway, noted Rich Ramko, EY Americas life sciences sector and biotechnology leader. A dwindling cash supply “is also forcing [companies] to consolidate, reverse merge, layoff staff, maybe consolidate their portfolio in addition to consolidating their operations, drop some of their assets . . . and just focus on the lead asset, which is your inflection-value generating asset.” NEW YORK, June 18, 2025 /PRNewswire/ -- The 35th edition of the Ernst & Young LLP (EY US) Biotech Beyond Borders Report finds that the biopharma industry is currently in a challenging market.

The industry is grappling with a unique environment of macroeconomic uncertainty and constrained access to capital such as high interest rates, inflation, shifting regulatory policies and tariff turmoil. This is the time for companies to focus on fundamentals and get ready to bounce back when the conditions improve. Arda Ural, PhD, EY Americas Life Sciences Sector Leader, says: "While predictions don't age well in this environment, there is light at the end of the tunnel. The biopharma industry has dealt with periods of uncertainty before, and 2025 will be a year of inflection during which companies will need to focus on the fundamentals, with scenario planning and cash efficiency... Biotech Beyond Borders analyzes the state of the industry through a summary of US and European public company revenues, financing, M&A activity, alliances, product approvals and other factors.

The report offers executives a deep dive into current dynamics as well as a perspective on the outlook. "During a challenging time for biopharma and biotech, the industry needs to look for the best ways to be efficient and extend cash runways," says Rich Ramko, EY Americas Life Sciences Sector and Biotechnology... "Successful companies and management teams will be those who embrace AI and new technologies to maximize efficiency and nurture innovation." EY today released its 35th annual Biotech Beyond Borders Report. This finds that the biopharma industry is currently at an inflection point – grappling with a unique environment of macroeconomic uncertainty and constrained access to capital, including high interest rates, inflation, shifting regulatory policies... This is the time for companies to focus on fundamentals and get ready to bounce back when conditions improve, the report notes.

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EY (Ernst & Young) recently came out with their Biotech Beyond Borders report. A few interesting items they shared: *The EY-Parthenon CEO Outlook Survey for May 2025, indicated that 94% of life sciences CEOs were concerned about tariff increases affecting operations and sales in the next 12... *Dealmaking over the last 18 months has slowed as large pharmaceutical companies focus on smaller, more strategic deals and shy away from the megadeals that make headlines. *A recent EY AI Pulse Survey of senior leaders across industries suggests that over half will move at least 25% of total budget toward AI investment over the next 12 months. What are your thoughts on these? https://lnkd.in/gjDae7xT

Private equity is quietly reshaping the pharma outsourcing landscape. Nowhere is this more evident than at events - from CPHI last week to #BIOEurope this week. We’ve all seen firsthand how funding rounds and investor priorities can trigger sudden changes - new leadership, shifting targets, even a complete reset of external partnerships. For partners like us, that often means building trust with a brand-new stakeholder overnight. It certainly does underline one thing that is true in all corners of our wonderful sector: agility, responsiveness and trust all really do matter. When ownership structures shift, the best partners are those who can adapt quickly, understand the new drivers at play, and keep momentum moving forward towards the ultimate vision.

In an industry where the ground is constantly shifting, you need marketing support that is commercially savvy enough to be as dynamic as the changes you might face, and one with the expertise to... ⏳ The Cost of Delay: Every Month Lost in Development = Eroded Value In life sciences, time isn’t just money — it’s market value. Each month of delay in drug development can cut a product’s Net Present Value (NPV) by 3–5%, depending on therapeutic area and market size (McKinsey & Company, 2023). That means a 12-month delay on a blockbuster drug can translate to tens or even hundreds of millions in lost value. The leading causes of delay we see at i3 Consult include: 🔹 Fragmented R&D handoffs between discovery and clinical phases 🔹 Regulatory rework due to incomplete submissions 🔹 Inefficient vendor and supply-chain coordination 🔹... 🔗 Learn more about how we help life science firms accelerate development and protect valuation: www.i3consult.com #LifeSciences #PharmaStrategy #DrugDevelopment #R&D #ValueChain #OperationalExcellence #Innovation #i3Consult Reference: McKinsey & Company (2023).

Speed and value in biopharma R&D: How leading companies reduce time-to-market. McKinsey & Company, March 2023. Available at: https://www.mckinsey.com [Accessed 21 Oct. 2025]. ⏳ The Cost of Delay: Every Month Lost in Development = Eroded Value In life sciences, time isn’t just money — it’s market value. Each month of delay in drug development can cut a product’s Net Present Value (NPV) by 3–5%, depending on therapeutic area and market size (McKinsey & Company, 2023).

That means a 12-month delay on a blockbuster drug can translate to tens or even hundreds of millions in lost value. The leading causes of delay we see at i3 Consult include: 🔹 Fragmented R&D handoffs between discovery and clinical phases 🔹 Regulatory rework due to incomplete submissions 🔹 Inefficient vendor and supply-chain coordination 🔹... 🔗 Learn more about how we help life science firms accelerate development and protect valuation: www.i3consult.com #LifeSciences #PharmaStrategy #DrugDevelopment #R&D #ValueChain #OperationalExcellence #Innovation #i3Consult Reference: McKinsey & Company (2023). Speed and value in biopharma R&D: How leading companies reduce time-to-market. McKinsey & Company, March 2023. Available at: https://www.mckinsey.com [Accessed 21 Oct.

2025]. ⏳ The Cost of Delay: Every Month Lost in Development = Eroded Value In life sciences, time isn’t just money — it’s market value. Each month of delay in drug development can cut a product’s Net Present Value (NPV) by 3–5%, depending on therapeutic area and market size (McKinsey & Company, 2023). That means a 12-month delay on a blockbuster drug can translate to tens or even hundreds of millions in lost value. The leading causes of delay we see at i3 Consult include: 🔹 Fragmented R&D handoffs between discovery and clinical phases 🔹 Regulatory rework due to incomplete submissions 🔹 Inefficient vendor and supply-chain coordination 🔹... 🔗 Learn more about how we help life science firms accelerate development and protect valuation: www.i3consult.com #LifeSciences #PharmaStrategy #DrugDevelopment #R&D #ValueChain #OperationalExcellence #Innovation #i3Consult Reference: McKinsey & Company (2023).

Speed and value in biopharma R&D: How leading companies reduce time-to-market. McKinsey & Company, March 2023. Available at: https://www.mckinsey.com [Accessed 21 Oct. 2025]. Ernst & Young’s latest report shows biotech investors remain cautious in 2025, but innovation and partnerships offer path for a rebound. Biotech and pharmaceutical companies are navigating a turbulent market in 2025, with macroeconomic uncertainty, high interest rates and shifting regulatory policies weighing on the sector, according to Ernst & Young’s (EY) latest Biotech Beyond...

The panel, titled “35th Biotech Beyond Borders Report: Are Capital Markets Finally Coming Back?” included speakers Ryan MacDonald, Vice President, Corporate Development, Bristol Myers Squibb; Marian Nakada, PhD, VP Venture Investments Johnson & Johnson... While policy uncertainty and capital scarcity have slowed deal-making, core science and innovation remain robust, noted Arda Ural, PhD, Americas Life Sciences Sector Leader, EY, who moderated the discussion. The overall findings of the EY report echo the sentiments from Cure’s recently published CEO survey, “The Future of Healthcare Innovation 2025,” which found 87 percent remain optimistic about the future of healthcare innovation,...

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