Does pharma R&D need a strategic reset? Adapting to a changing US landscape

R&D productivity has long challenged research-based pharmaceutical companies, raising concerns about the sustainability of their research-driven business models. These firms have traditionally relied on the U.S. as a stable hub for biomedical innovation, skilled talent, and high-price markets-supporting the biotech-leveraged pharma company (BIPCO) model However, recent geopolitical shifts-especially under the new Trump administration, including FDA budget cuts, reduced U.S. research funding, and pharmaceutical tariffs-are destabilizing this foundation. The once-reliable "safe harbor" is no longer secure. As a result, pharma R&D now faces strategic risks beyond its prior scope. With the weakening of the U.S.-centered innovation model, companies must rethink R&D pipelines, secure key technologies, maintain global clinical networks, and adjust supply chain and tax strategies. The viability of the current R&D model-rooted in U.S. leadership and premium markets-is now uncertain, requiring urgent strategic realignment.