Like organizations in many industries, biopharma companies are facing heightened uncertainty. Unpredictable outcomes from changes to healthcare and pricing regulations, tariff and trade policy, and reductions in public research funding—not to mention a general queasiness about a possible recession—have investors tightening their belts.
Neither biopharma companies nor their patients can wait for the market to get “back to normal.” But few organizations can afford to continue with the plans they made six or 12 months ago. In fact, the EY Biotech Beyond Borders Report 2025 notes that 39 percent of biotech companies have cash for less than one year of operations.
So, what’s a company to do? The answer is simple but not easy: Focus on what’s most important to your strategy and execute with discipline.
Refocus with Ruthless Clarity
Clarity is critical. Investors want a tight story and focused plan, and your team wants to work on something that truly matters and has a chance to succeed.
Start with a system to rate every asset or program. Include factors such as alignment to strategy, unmet need, scientific risk, regulatory clarity, market viability, and cost to the next milestone. You might prioritize assets that can leverage existing platforms or data, qualify for expedited regulatory review, or attract co-development partners. Force a ranking, including favorite programs, to minimize the human nature biases that impact strategic prioritization. But don’t overweight financial valuations because they are almost impossible to predict.
Using timing, capital, and resource constraints as a guide, make the tough decisions about what you can pursue with confidence—and which programs, hires, or fundraising efforts you should delay or eliminate.
It’s important that the leadership team aligns on the most important pursuits. When they don’t, they have no chance to align others toward a common vision.
Identify anchor milestones in the next 12–18 months that you can confidently deliver, such as an investigational new drug (IND) filing, preclinical or clinical study readouts, or a licensing deal. Milestone-driven development—structuring programs in smaller, fundable phases—can make them more attractive to investors looking for near-term proof of viability. Craft a compelling narrative that ties milestones to outcomes, and tailor messages to different investor types. Companies that can tell a concise, confident, credible story will stand out.
Develop go/no-go decision points more rigorously. Drop assets earlier if data isn’t compelling or the regulatory/commercial risk is too high. Create internal stage gates tied to scientific, financial, and strategic metrics. When you do have a setback, take the time to extract lessons. In unpredictable environments, fast learners have an edge.
Scenario planning can help you prepare for various what-ifs, from tariffs to regulatory guidance to study results. You can’t build plans for every possible outcome, but it can help crystallize your priorities and identify what you can control.
Strengthen the Backbone
When you are pre-revenue, managing your cash burn rate is critical. Development partnerships, specialized expertise, capacity, and long-term strategic plans all should inform decisions.
Save money wherever practical. While larger pharma and biopharma companies are automating routine processes and optimizing supply chains, emerging biopharma companies can enhance workflows and vendor management.
Mapping every step of your timeline will help identify risks, cross-functional interdependencies, and bottlenecks. Follow best practices, or take advice from those with experience and expertise, to uncover unknowns and set realistic milestones. And don’t underestimate the need to monitor them to ensure internal teams and outsourced partners are on track.
Meeting timelines is mandatory to stay in good standing with vendors, some of whom may be tempted by larger companies that are reshoring supply chains and other activities. Maintain strong relationships, with communication and transparency as a foundation.
Lead from the Inside Out
Your internal team may be uncomfortable with uncertainty. A structured communication and change management strategy will help keep them informed and engaged. Empathize with employees’ needs and be sure to communicate challenges and opportunities.
In smaller companies, every employee has an outsized impact on results. Make sure the staff knows how their role impacts success and both strategic and tactical outcomes.
Control What You Can
Biopharma companies can’t control every market force. But they can control their clarity, discipline, and partnerships. By focusing on the fundamentals, aligning teams, staying close to partners, and executing with consistency, companies can weather the storm and emerge stronger.
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