FTI Consulting Survey Identifies Renewed Optimism as Healthcare & Life Sciences Sector Embarks on 2025
79% of Industry Leaders Feel Optimistic About Industry’s Potential
Economic Uncertainty, Cybersecurity Incidents and Political Uncertainty Seen as Key Challenges
Industry Increasingly Investing in Cybersecurity Preparedness
Washington, D.C., Dec. 19, 2024 — FTI Consulting, Inc. (NYSE: FCN) today announced the results of its U.S. Healthcare & Life Sciences Industry Outlook 2025, which found that after years of tempered expectations, 79% of leaders are increasingly optimistic about the industry and its financial outlook, up 11% from last year’s survey.
According to the survey, 66% of leaders expect higher M&A activity in 2025 and 4 in 10 respondents expect a greater ability to raise capital, up 10% from last year. The increasing confidence in dealmaking and fundraising is a strong indication of the industry’s renewed optimism going the coming year.
“After years of speculation and tempered optimism, M&A activity is expected to increase in 2025, as companies predominantly look to acquire viable, late-stage assets in order to grow their pipeline and accomplish their business objectives,” said Robert Stanislaro, a Senior Managing Director and Head of the Healthcare & Life Sciences’ Corporate Reputation offering within the Strategic Communications segment at FTI Consulting. “Particular areas of investment include the rise of obesity treatments, an increased focus in immuno-oncology, gene editing and AI-powered drug discovery. The growing optimism amongst industry leaders and key stakeholders opens up the opportunity for companies to position themselves as innovators in the field and rise above the crowded marketplace.”
Looking at potential risks and challenges, those surveyed cited economic uncertainty (38%) as the biggest liability facing the industry, followed by cybersecurity (23%) and political uncertainty (22%). Notably, political uncertainty rose in prominence this year as leaders reflected on the potential implications of the U.S. presidential election.
While the survey was conducted prior to the results of the U.S. presidential election, the findings provide insights into how the industry may be preparing for a second Trump administration. In October 2024, nearly 6 in 10 respondents stated that a potential Trump administration would have a positive impact on their business.
“As the industry prepares for a second Trump administration, leaders should expect to see a focus on reducing federal regulations, promoting market-based solutions and competition through a more favorable deal-making environment, addressing the cost of prescription drugs, and decreasing federal involvement in health coverage,” said Lauren Crawford Shaver, Americas Head of Healthcare & Life Sciences within FTI Consulting’s Strategic Communications segment. “While some changes could be implemented via executive orders, other major reforms would require congressional support and face substantial political hurdles. In light of this, industry leaders need to not only monitor but also grow their political relationships at the local, state and federal level.”
Cybersecurity incidents have become increasingly prevalent across the industry. With that, executives are becoming more familiar with the reputational and operational challenges these situations pose and are preparing accordingly. Sixty-eight percent of respondents said they have a crisis communications plan in place and 53% have participated in a crisis simulation, up 13% and 37% from 2024, respectively.
The full survey report is available here.
About the Survey
This research was conducted online by FTI Consulting’s Strategic Communications segment between September 24 – October 9, 2024, with 250 decision-makers in corporate communications, investor relations, public affairs, business development and marketing for healthcare and life sciences companies in the United States. Forty-three percent of respondents represent large companies (with more than 250 employees), and roughly one third (35%) represent publicly listed companies with a weighted average $5 billion market cap.
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Source: FTI Consulting, Inc.