A Real Economy publication

2026 life sciences industry outlook

January 19, 2026

Key takeaways

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Medtech investment is shifting to fewer, larger deals favoring tech-driven innovation.

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AI-powered radiology and neurology devices are attracting growing venture capital interest.

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UK reforms aim to restore investor confidence and attract global life sciences capital.

TREND: Medtech investment and IPOs on the rise

In recent months medtech companies have seen an uptick in initial public offering activity, with 2025 IPOs on U.S. exchanges potentially topping the combined totals for 2023 and 2024 and private equity investment reaching a postpandemic high. While the medtech sector still faces many challenges—including capital constraints, tariffs and regulatory uncertainty—companies that leverage technology, especially artificial intelligence and machine learning, are poised to succeed.


TREND: Unlocking UK-U.S. life sciences potential

UK-U.S. collaboration in life sciences remains one of the most resilient and productive relationships in the global economy. Yet sustaining this strength will require deliberate action to close gaps.


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