The outlook for the global life sciences and medtech sectors is positive, but navigating the complex global landscape will require “innovative thinking, agile operating models, and robust external partnerships to help ensure sustained growth,” according to the 2026 Life Sciences Outlook released by Deloitte Insights.
The survey is based on the responses of 280 life sciences executives between August and September 2025 from the US, France, Germany, Switzerland, the UK, China and Japan.
The survey indicates that leaders in the life sciences sector see innovation, coupled with the intentional scaling of technology, as a way to navigate uncertainty and fuel growth in the year ahead. Three key actions identified for driving this growth include organic pipeline replenishment and expansion; renewed focus on mergers and acquisitions; and using AI as a growth engine.
Of biopharma executives, 43% said that their R&D priorities include expanding portfolios into new therapeutic areas and indications, as well as developing new drug modalities or discovery platforms. Executives expect that large molecules, cell, gene and RNA-based therapies and antibody-drug conjugates will power revenue growth over the next two to three years, the report said.
Meanwhile the survey indicates that executives in medtech will be focusing on AI and digital solutions in 2026. AI-driven diagnostics, and expansion into adjacent product categories, were cited by 49% and 46% of respondents, respectively, as development priorities.
Mergers and acquisitions, which the report notes have had ‘a recent lull’ are on the rise and fuelling growth. The survey says that 45% of biopharma leaders and 51% of medtech leaders see M&A as a top near-term strategic priority. "In biopharma, appetite is returning for pipeline expansion and early-stage assets, with aggregate deal value in the first three quarters of 2025 ($91.9 billion), already exceeding the total for 2024 ($61.7 billion),” the report notes.
The report quotes one executive who said more deals were getting done in the latter part of 2025 compared to the last few years. Medtech also saw a rebound in M&A activity with companies in diagnostics, cardiovascular and orthopaedics, seeing significant activity.
Meanwhile in AI, the survey says: “AI appears to be evolving from a productivity tool into a growth catalyst for life sciences organisation.” The survey indicates that 39% respondents in biopharma see investments in AI-enabled platforms as a key growth driver for 2026: in medtech this rose to 53%.
Considering the external influences and trends impacting the life sciences sector, regulation and policy were cited as an important. In the survey 51% of respondents in this sector, located outside of the US, pointed to national regulatory changes – such as the EU AI Act, the European Health Data Space and China’s volume-based procurement program – that could affect market access, pricing and reimbursement models. Meanwhile in the US, 36% of respondents highlighted restructuring within the Food and Drug Administration and the Department of Health and Human Services. A further 39% cited economic policy changes including tariffs.
Other significant trends include accelerated digital transformation, manufacturing and supply chain risks and pricing and access. The largest change, when compared with the 2025 survey was concern around geopolitical and economic uncertainty. The latest survey showed this was a concern for 39% of respondents, compared with 19% in the previous year. A similar portion of respondents, 38%, also cited inflation, broader economic pressures, and supply chain risks as factors that were set to shape organisational strategies during 2026.
Despite the overall positive outlook, the survey notes that confidence levels differed across regions. Of biopharma leaders in European and Asia countries, 90%, were positive or cautiously positive about the coming year. However, optimism is more tempered among US-based biopharma leaders, with 56% expressing a positive or cautiously positive outlook for 2026, while 27% were negative or uncertain about the coming year.
“Our research suggests that leaders who are well prepared for the future, are those who scale AI strategically, redesign how work is done, and align investments with the most defensible sources of value,” Deloitte said.
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