After the turbulent years of the pandemic, the biopharmaceutical research and development sector is regaining ground. This is what emerges from the Global Trends in R&D 2025, published by IQVIA Institute: in 2024, global funding reached 102 billion dollars, while clinical trials returned to pre-COVID levels. Emerging companies are driving innovation, with a growing role of China and technologies such as RNA, radiotherapies and artificial intelligence. But critical issues remain to be addressed: long times, high costs and geographical heterogeneity.
R&D Funding: A New Spring After the Pandemic Slowdown
In 2024, global biopharma R&D funding reached $102 billion, marking the third-highest level of the decade and confirming a second consecutive year of post-pandemic growth. This surge was primarily driven by follow-on funding, which accounted for 45% of the total, reaching $46 billion — up 77% from the previous year.
Although IPO activity recovered slightly ($7 billion in 2024), it remained historically low. M&A activity, while slightly down in number (from 86 to 81 deals), saw its median deal value soar from $153 million to $405 million. Deals in the $1–5 billion range doubled, accounting for $51 billion in value.
Emerging Biotech: The New Innovation Engine
A defining shift is the growing prominence of Emerging Biopharma (EBP) companies — defined as firms spending under $200 million annually on R&D. These companies accounted for 66% of all new deals in 2024 and continue to demonstrate increasing independence. In 2015, EBPs sponsored 42% of Phase II studies; by 2024, that figure rose to 64%. Even in the complex Phase III trials, they now hold the majority share (56%).
Therapies of the Future: RNA, radiopharma and bispecific antibodies
Innovation is accelerating in diverse areas. Over the past five years, deals involving RNA-based therapies and radiopharmaceuticals have more than doubled. A standout example in 2024 was Sarepta’s $13 billion investment in Arrowhead’s RNA platform.
In oncology, new modalities such as bispecific antibodies, antibody-drug conjugates (ADCs), CAR-T therapies, and gene therapies now account for 35% of trials — a sign of the shift toward more precise and personalized treatments.
AI and Drug Development: from Promise to Practice
Artificial intelligence has emerged as a structural driver of innovation. In 2024, twelve AI/ML-related life sciences deals surpassed $200 million each, totaling $9.7 billion. Notably, Isomorphic Labs secured nearly $3 billion in deals with Eli Lilly and Novartis, while Generate:Biomedicines partnered with Novartis for AI-driven protein optimization.
AI is becoming operational: FDA submissions involving AI jumped from 14 in 2020 to 170 in 2022. In January 2025, the FDA released draft guidance on AI/ML use in drug and biologics development.
Clinical Trials: stable volume, shifting geography and priorities
Clinical trial starts in 2024 totaled 5,318 — matching pre-pandemic levels from 2019. However, geographic and therapeutic shifts are notable. The U.S. maintained its lead (35% of trial starts), while China reached 30% and Europe declined to 21%.
Oncology remains dominant (41% of all trials), but obesity is the fastest-growing area: trial starts rose 77% year-over-year in 2024. There are now 173 anti-obesity drugs in development, many based on GLP-1 agonists and combination therapies.
Conversely, infectious disease trials — excluding COVID-19 — fell by 176 studies compared to 2019, raising concerns about the pipeline for antibiotic-resistant infections.
Productivity and complexity: still a challenge
IQVIA’s Clinical Program Productivity Index (CPPI) shows a slight productivity improvement in 2024, thanks to better Phase III success rates. However, trial enrollment times are increasing, especially in oncology (median: 25+ months).
Trials are also growing more complex: more sites and subjects per study, even as inclusion/exclusion criteria remain tight. Adaptive designs, decentralized trials, and real-world data are key enablers for future R&D efficiency.
China’s strategic rise
The report highlights China’s growing role: between 2020 and 2024, China launched 76 NAS exclusively for its domestic market — up from just 9 in the previous five years. Median launch lag decreased from 7.5 to 3.7 years.
Importantly, 71 of the 73 China-related international deals in 2024 involved out-licensing or acquisition by U.S. or European companies, reinforcing China’s “for-the-world” R&D strategy.
And in the 2025?
This year begins with strong momentum in biopharma R&D: funding is rising, emerging biotech firms are leading innovation, and technologies like AI and RNA are reshaping the pipeline.
Still, significant hurdles remain: longer development timelines, declining attention to infectious diseases, and increased trial complexity. The future of innovation will rely on more agile development models, smarter collaborations, and broader global participation.
