TRENDS 2026: Rise of RESILIENT Life Sciences Innovation

US President Donald Trump's tariffs, with a fear of global recession and geopolitical tensions affecting industries worldwide, was the memorable aspect of 2025. Despite these challenges, the Indian life sciences sector has remained resilient and steadfast. To avoid the impact of Trump's tariffs, almost all major pharma firms expanded or increased their presence in the US, often through acquisitions. A key highlight was the Indian government introducing several measures to simplify drug approvals and support innovation. Key reforms included updating the New Drug and Clinical Trial Rules (2019) and adopting digital platforms for regulatory submissions to improve transparency, reduce approval timelines, strengthen pharmacovigilance, and maintain quality standards. As we move into 2026, many of the trends and themes from 2025 are expected to carry forward, shaping the industry's trajectory in the year ahead. Let's look at these trends across different sectors.

- Ayesha Siddiqui

Amajor trend in 2025 was the rise of anti-obesity drugs. Mounjaro, in particular, saw rapid uptake and became the second-highest selling weight-loss drug in India within just six months. Another highlight was the opening of several Centres of Excellence (CoE). Notably, Miltenyi Biotec inaugurated India's first Cell and Gene Therapy (CGT) CoE in Hyderabad, reflecting the growing focus on advanced therapies. Much like everything in life, artificial intelligence (AI) continued to deepen its presence across healthcare, transforming diagnostics, research, and drug development.

PHARMA AND BIOTECH

Policy and Innovation

Driving Advanced Therapies

The Government of India has launched the 'Promotion of Research and Innovation in Pharma MedTech sector (PRIP)' scheme to promote innovation in India. The scheme has a total financial outlay of Rs 5000 crore, which includes Rs 700 crore to establish Centers of Excellence (CoEs) at seven National Institutes of Pharmaceutical Education & Research (NIPERs), and Rs 4200 crore to accelerate investments in the R&D ecosystem within the sector. The scheme has defined three priority areas for funding: new medicines, Complex generics and biosimilars and novel medical devices.