The life sciences and pharmaceutical industries are witnessing significant trends, including the rise of option deals with blended transaction structures, increased European start-ups or spin-outs form universities, and growing investment in AI/ML-enabled healthcare technology. Additionally, cell and gene therapy approvals are increasing leading to continued investment activity, as well as more opportunities for the non-Chinese CDMO market.
Key Considerations in 2025
Option Deals
Increased Spin-Outs and European VC Financing
Use of AI in Life Sciences
Continued Rise of Cell and Gene Therapies (“CGT”)
Opportunities for the Non-Chinese CDMO Market
Trends and themes to act on
- Capitalise on European Start-Ups: When looking for high-growth investment opportunities, ensure that you consider European start-ups. The European market offers quality companies at a comparative discount to the US — with excellent science, management teams and infrastructure. As part of this, monitor the science undertaken at European universities for opportunities for collaboration and investment.
- Consider Option and Blended Deal Structures: Consider de-risking early investments through a range of transaction structures, which can include options and blended collaboration transactions. On the reverse, consider if there are any non-core areas of your organisation that may be ideal to form spin-out transactions or NewCos to optimise initiatives and attract third-party investment.
- Monitor Regulatory Developments: When navigating the complex regulatory landscape and looking to avoid potential setbacks, stay vigilant about emerging regulations and policies to ensure your approval and commercialisation strategies remain effective and compliant. This remains particularly relevant in CGT or AI.
For more information
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