Sector Performance

Amid ongoing regulatory and macroeconomic uncertainty, M&A activity in the life sciences and health care sector had a slow start in 2025 before rebounding modestly from the second quarter onward. Buyers remained disciplined, prioritizing assets with near-term revenue potential or differentiated platforms, while sellers focused on divesting non-core assets to focus on core businesses.

Innovation continued to anchor sector strategy, with sustained investment in digital health and AI to accelerate drug discovery, optimize clinical development, and improve precision diagnostics. Companies also continued to embrace creative deal structures such as milestones, earnouts, and option-based partnerships to bridge valuation gaps and manage risk.

Hogan Lovells Activities

Our Life Sciences and Health Care team remained closely engaged with clients around the world, advising on the evolving geopolitical landscape and the growing impact of AI, digital health, and advanced technologies.

We launched the seventh edition of our Life Sciences and Health Care Horizons publication, highlighting global market developments across pharmaceuticals, medical devices, and digital health. Through events, webinars, and our Talking the Cure podcast series, we delivered practical insights on emerging risks and opportunities.