2026 is the year of pharma manufacturing, supply chain efficiencies

2025 was a tumultuous year marked by rising global geopolitical tensions and rapidly evolving U.S. trade and drug price policies. However, the outlook for the biopharma industry in 2026 is cautiously optimistic as companies spent the past year adapting to a challenging business environment.

In a recent survey, data and analytics firm GlobalData found that 52% of pharmaceutical professionals felt optimistic or very optimistic about the industry’s growth in 2026 — an increase of 10% compared to six months ago — while 39% of those surveyed reported being optimistic or very optimistic on the recovery of biotechnology funding over the next year, an increase of 15% from results in May 2025.

Now, with the benefit of clarity on the Trump administration’s threats to impose pharma-specific tariffs and push for Most-Favored-Nation drug pricing, the sector appears more resilient in their abilities to capitalize on growth opportunities while mitigating risks.

“Firms contended with inflationary pressures that raised manufacturing and operational costs, the introduction of new federal policies around international reference pricing, ongoing supply chain disruptions, and increasing regulatory scrutiny, particularly around drug pricing,” according to consulting firm Milliman.

Looking ahead to this year, Milliman’s assessment is that global tariffs and trade tensions will continue to pressure biopharma manufacturers, driving supply chain decisions and the economics of domestic production.

“Companies may face increased costs or be incentivized to shift manufacturing closer to home,” Milliman argues. “Strategic assessment of sourcing, production, and distribution models will be critical to maintaining resilience and profitability amid fluctuating global market conditions.”

Supply chain resiliency

According to professional services firm BPM, supply chain resilience is no longer just a back-office concern but a board-level priority for life sciences companies, particularly as regulatory scrutiny and geopolitical trade dynamics introduce uncertainty into global manufacturing strategies.

“Organizations that can demonstrate agile, redundant, and compliant manufacturing capabilities will be better positioned to commercialize their pipelines successfully,” BPM contends in its 2026 life sciences industry outlook.

The firm points to the proliferation of novel modalities — including cell and gene therapies, RNA-based treatments, and complex biologics — which are putting unprecedented demands on life sciences companies’ manufacturing capabilities.

These advanced therapies require specialized facilities, sophisticated quality systems, and highly trained personnel that are in limited supply, according to BPM, which notes that companies are responding by securing flexible manufacturing partnerships, diversifying their contract manufacturing organization (CMO) relationships, and making strategic investments in internal capacity.

Among the trends shaping the life sciences landscape in 2026 are automation and the scaling of cell and gene therapy (CGT) processes, according to staffing and professional services firm Insight Global. Automation such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) is being leveraged to reduce costs and scale production, while minimizing human error, boosting throughput, and optimizing CGT workflows.

“Automations are allowing the industry to move faster and more efficiently, especially regarding manufacturing and the supply chain,” argues Insight Global. “By 2026, we’ll see broader adoption of CAR-T therapies, gene editing technologies like CRISPR, and off-the-shelf cell therapies. As a result of this shift toward scalable CGT solutions, life sciences companies must prepare for the operational complexities that come with them, especially considering manufacturing, logistics, and patient access.”

Going regional, local

Consulting firms Deloitte and West Monroe also issued their respective insights on key trends expected to shape the life sciences industry in 2026. Deloitte’s report indicates that geopolitical tensions are among the chief concerns weighing on life sciences leaders, who identified inflation, broader economic pressures, and supply chain risks as factors likely to shape organizational strategies this year.

Tariffs are increasing costs for active pharmaceutical ingredients (APIs), raw materials, and lab supplies which are causing companies to take steps to reduce exposure, according to West Monroe’s life sciences industry outlook report.

West Monroe recommends that companies map out supply and tariff risks across their most critical inputs — from APIs and raw materials to reagents, single-use components, and replacement parts — and that companies collaborate with contract development and manufacturing organizations (CDMOs) that have both U.S. and global capacity, creating hybrid models that balance resilience, cost, and regulatory complexity.

Large CDMOs with global footprints — such as Lonza and WuXi AppTec — are well positioned to capitalize on the growing demand for their outsourced services. Tariffs, challenging funding environments, and intensified cost pressures are accelerating the biopharma industry’s supply chain shift toward outsourcing, according to JLL’s 2026 Life Sciences Real Estate Trends to Watch report.

At the same time, Insight Global called out AstraZeneca’s strategic investments in internal capacity with a pledge to invest $50 billion in manufacturing and R&D in the U.S. by 2030 and a $2.5 billion investment in Beijing over the next five years to establish a new global strategic R&D center and expand partnerships in biotech and manufacturing in China.

“These decisions to globalize have broader implications, too, increasing demand for regional manufacturing hubs, localized supply chains, and resilience planning,” Insight Global concluded. “Companies need to build local teams, training programs, and cross-border collaboration models to truly be successful.”

AI, IoT, and robotics are critical to modern manufacturing and the “right partners to accelerate these efforts will be able to reference and adhere to good manufacturing practice (GMP) standards,” according to Insight Global.

While digital transformation is progressing within the biopharma industry, it is still held back by a lack of talent, limited budgets, and organizational silos. However, in 2026, the shift to digitalization will continue with the integration of AI-powered tools, implementation of other advanced technologies, and formation of strategic partnerships.