Life sciences firms focus on cost cuts for growth

Anchoring the Deloitte’s 2026 Life Sciences Outlook Survey, is the first response evaluating optimism in the sector. While largely optimistic, United States respondents clearly had less goodwill to share regarding the industry’s overall performance in 2026. 

The trends likely to influence corporate strategies in 2026, according to the life science C-suite executives from 180 biopharma and 100 medtech companies, include: 

However, the report noted that these life sciences leaders expect “cost discipline” as essential for addressing these market conditions in the coming year. 

As shown in the chart from Deloitte, R&D productivity improvement as a cost management strategy is a big piece of the biopharma equation, with 41% choosing it as a priority. However, R&D productivity comes with its own challenges. 

Andy Bolt, leader, life sciences R&D practice, Deloitte Consulting LLP, told the audience at the recent SCOPE Summit that the R&D productivity area has the potential for the largest impact, but is also one that will be achievable over time. He noted that upward of 46% of companies want to modernize their legacy R&D workflow and systems, which includes changing to an end-to-end holistic process that enables digital data flow. “Technology alone won’t solve the productivity issue, and it needs more to scale,” Bolt said. 

In addition, Bolt noted that investors were cognizant of commercial strategy, especially around label or indication expansions, as well as how company’s intend to increase volume. 

A final observation from the report reveals a renewed focus on mergers and acquisitions, partnerships, investment in AI, and new drug and device launches—all with their own focus on what finance brings to the corporate landscape in 2026.