Life sciences industry outlook for 2026 and beyond  

The life sciences industry is entering 2026 with more momentum, complexity and opportunity than it has seen in years. In this forward-looking webinar, Baker Tilly professionals from across the firm break down the forces shaping the market—from shifting capital flows and regulatory changes to tax policy, global trade dynamics and risk considerations. This session offers a clear, executive-level snapshot of what organizations should be watching as they prepare for the year ahead.

There is a noticeable shift in sentiment across the life sciences industry. After a challenging start to 2025, the second half of the year brought renewed optimism fueled by stronger deal activity, rising transaction volumes and early signs of life in the initial public offering (IPO[CC1] ) market. Major bidding wars and strategic acquisitions underscore the dormant opportunity potential and the likelihood that this year will be active for both pharma and medical technology (medtech) dealmaking. At the same time, venture capital and private equity are expected to become increasingly important sources of funding, especially as early stage companies navigate a changing federal funding landscape.

In the webinar we explored how recent tax legislation is reshaping planning for life sciences organizations. With the return of 100% domestic research and development (R&D) expensing, restored bonus depreciation and more favorable interest limitation rules, companies now have new flexibility to rethink where and how they invest. The relevance of state level incentives continues to grow as well, emphasizing that time sensitive credits and grants could meaningfully influence where innovation and expansion occur in 2026.

Global trade is another area undergoing significant shifts. Companies across the sector are impacted by an evolving tariff landscape that touches everything from active pharmaceutical ingredients (API[CC2] s) to medical devices and research equipment. The potential Supreme Court decision on International Emergency Economic Powers Act (IEEPA) related tariffs—representing hundreds of billions of dollars in possible refunds—adds another layer of complexity. Organizations should prepare for lengthy administrative processes and heightened compliance scrutiny if seeking potential refunds.