Biotech companies are an important source for innovation and product development for larger companies and are an important customer base of CDMOs/CMOs. Capital flow in the biotech sector, a key barometer of the financial health of the sector, has been under recent pressure and faces additional headwinds as larger macro issues in the US on trade/tariffs, tax and monetary policy, and proposed drug pricing reforms contribute to uncertainty.  

In the latest episode of the DCAT Production to Prescription podcast, “Headwinds or Tailwinds: Will the Biotech Sector Rebound in 2025?,” Arda Ural, EY America Life Sciences Leader, Ernst & Young (EY), provides perspective on the key financing trends into the biotech sector, including venture capital and initial public offerings and the key factors to watch for in 2025 and 2026.     

Global API demand and supply 
Also top of mind for the industry is the potential impact on manufacturing and supply lines if the US proceeds with a plan for implementing reciprocal tariffs, which are imposed on a country-by-country basis. If imposed, a key question is would such tariffs serve as an impetus for shifts in diversifying manufacturing operations geographically? 

In the Production to Prescription podcast episode, “Global API Outlook: Will Supply Lines Change Amid Tariff Uncertainty?,” Julia Morilla, Associate Content Analyst, Cortellis Product Intelligence, Clarivate, breaks down the demand–supply fundamentals for the global active pharmaceutical ingredient (API) market—the size, growth rates, key trends and geographic dispersion of global API manufacturing. 

DCAT Value Chain Insights’ Production to Prescription podcast features thought leaders with expert views on the major happenings impacting the global bio/pharmaceutical manufacturing value chain and industry performance. ICYMI, other recent episodes include: 

“Biomanufacturing: How are Industry Capacity & Supply Chains Trending?,” featuring Eric Langer, MBA, Managing Partner & President, BioPlan Associates, and Renaud Jacquemart, PhD, MBA, Senior Advisor, BioPlan Associates; 

“Parenteral Drug Manufacturing—CDMO Outlook: A Capacity Crunch or Easing?,”  featuring Ian Tzeng, Managing Director and Partner, L.E.K. Consulting and Head of  L.E.K.’s Pharmaceutical Contract Services Practice; and 

“Bio/Pharma Industry Outlook, Supply Chains 2025: The Year Ahead,” featuring Derron Stark, EY-Parthenon Partner, Strategy & Transactions – Health Sciences & Wellness, Supply Chain, Ernst & Young LLP.