Week of March 17, 2025

Each week we highlight five things affecting the life sciences industry. Here’s the latest.

Drugmakers in the U.S. have been facing a patent cliff since 2023. Patents on a slew of major drugs are expiring allowing for generic and biosimilar competitors to enter the market.
Fierce Pharma highlights the top 10 drugs (based on 2024 sales) that are losing exclusivity in 2025.

After years of limited investment from big pharmaceutical companies, recent acquisitions by such companies signal renewed interest in mental health treatments, according to The Wall Street Journal. But challenges like unclear biological targets and reliance on subjective patient reports to judge trial results make drug development in psychiatry particularly difficult.
Despite hesitancy from large pharmaceutical companies, middle market biotech firms have driven innovation, leading to promising new treatments in areas such as schizophrenia and bipolar depression.

The U.K. government plans to raise the statutory drug rebate rate from 15.5% to 32.2% in late 2025, sparking backlash from the Association of the British Pharmaceutical Industry (ABPI), which argues the increase threatens industry investment and growth, per Fierce Pharma.
The ABPI warns that rising rebate rates could discourage pharmaceutical investment in the U.K., citing examples of large pharmaceutical companies canceling planned investments due to insufficient government support.

According to MedTech Dive, Dr. Mehmet Oz, the nominee for administrator of the Centers for Medicare and Medicaid, advocated for faster Medicare coverage of U.S. Food and Drug Administration-approved medical devices, during a hearing before the Senate Finance Committee.
Oz criticized the current lengthy process that can delay access for beneficiaries by years, citing specific examples of technologies for which coverage was delayed.

Pharmaceutical companies are urging the U.S. federal government and the European Union to exclude certain medical goods and pharmaceutical products from trade disputes, arguing that tariffs would increase drug costs and limit patient access, according to Reuters.
Some companies have indicated that they are exploring expansion of their U.S. manufacturing operations but emphasize the high costs and long timelines involved.

For more insights in life sciences, check out RSM’s industry outlook.