A Real Economy publication

Life sciences industry outlook: Summer 2022

May 20, 2022

Life sciences industry outlook key takeaways

Capital markets are unsettled and uncertain in the biopharma sector.

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Clinical trial volume remains strong amid uncertainty in capital markets. 

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Medtech companies jockey for market dominance in a competitive sector.

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Life sciences Economics

From fundraising challenges to competition for highly skilled talent, life sciences companies have much to consider in the coming months.

Looking ahead, life sciences companies will encounter fundraising challenges and increased competition for experienced and highly skilled talent, as well as fallout from volatile economic conditions. However, innovation and opportunity are always on the horizon for many businesses in the biopharma, life sciences services and medtech sectors. We explore what’s happening and what’s to come.

Many recent headlines involving the biopharma sector paint a bleak picture. Looking only at the past few months of public and private financing and stock prices, it would be easy to conclude that the industry faces major headwinds. However, despite the difficulties facing companies that need to raise capital right now, the industry is still quite healthy overall. In this biopharma outlook we examine current challenges, while also highlighting reasons for optimism, including access to opportunities that did not exist a year ago.


We discuss capital markets and the impact of biotech funding on clinical trials. We also look at labor challenges facing the overall economy, and how the life sciences industry, particularly the clinical trials and life sciences services sectors, remains resilient. In addition, we cover core metrics related to clinical trial activity.


Medtech demand continues to rise, but device-makers face difficulty meeting it due to high supply costs and manufacturing challenges related to disruption in the global supply chain. Research and development spend nearly doubled in 2021 and remains strong as companies jockey for market dominance in an increasingly competitive sector.

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