Healthcare Horizons: Insights on Industry Growth and Innovation

Synopsis 

• Riding a wave of groundbreaking therapies emerging after more than a decade of rigorous investment in research and development, the state of the U.S. life sciences industry is strong. 

• Growth is fueled by several key factors (including, but certainly not limited to): the transformative health benefits of GLP-1 drugs, the increasing emphasis on specialized/personalized therapies and preventative care, and the potential of agentic AI to revolutionize healthcare.  

• However, amidst these advancements, we must remain mindful of the challenges ahead: rebuilding trust with patients and reducing costs are crucial to ensure that more individuals can access and adhere to these groundbreaking therapies. 

Innovation is driving industry growth in the US market 

In recent years, the U.S. pharmaceutical market has experienced substantial growth, reaffirming its pivotal role within the global life sciences sector, where growth rates are comparatively subdued. Despite prevailing macroeconomic uncertainties, the U.S. healthcare market has demonstrated remarkable resilience, with 2023 and 2024 marking consecutive years of notable expansion.  

In 2024 alone, 48 novel active substances launched in the U.S., adding to a five-year total of 273 new therapies. The majority of these new substances—44 to be precise—are specialty drugs, with a notable focus on orphan and oncology therapies, many of which are first-in-class therapiesⁱ. 

This growth is not solely propelled by innovation; patients are also benefitting from the increasing role of real-world data in expanding the indications for existing therapies. Furthermore, approximately one-third of recent U.S. growth is attributed to the surge in obesity management therapies, particularly GLP-1s. Collectively, the sustained investment in research and development, along with the advancements in data and technology that facilitate new applications for current therapies, positions the U.S. pharmaceutical industry for continued growth and innovation in the years ahead. 

The Impact of GLP-1 Drugs on Preventive Health Management 

Originally developed for diabetes management, GLP-1 drugs are now making waves as transformative agents in treating and preventing chronic conditions, most notably obesity. These medications are poised at an inflection point, offering a beacon of hope in managing weight-related health issues. 

The implications of effective obesity management are profound, encompassing improvements in cardiovascular health, reductions in fatty liver disease, and prevention of type 2 diabetes. Furthermore, managing obesity could significantly impact cancer rates, given the established link between obesity and various cancer forms. Current studies are also investigating the role of GLP-1 drugs in reducing inflammation and addressing neurodegenerative disorders such as Alzheimer's, as well as psychiatric and addictive behaviors. 

 While the potential benefits are immense, the true transformative impact will be realized when these drugs reach the populations that need them most. Presently, the distribution of GLP-1 prescriptions does not align directly with the populations most affected by high obesity rates, indicating that coverage and accessibility remain significant barriersⁱⁱ. Addressing these challenges could enable GLP-1 drugs to revolutionize healthcare by alleviating the burden of chronic diseases and fostering a paradigm shift where proactive prevention today significantly outweighs the need for extensive treatment tomorrow. 

An Emphasis on Preventative Care as The Future of Healthcare 

Preventative care is increasingly recognized as a cornerstone for a healthier future, shifting the focus from disease treatment to early detection and intervention. Despite significant healthcare expenditure—estimated at 17% of GDP in 2023ⁱⁱⁱ—the U.S. lags in life expectancy and health outcomes compared to other developed nations, with a life expectancy of 79.4 years in 2024, whereas much of Europe and Canada observe life expectancies exceeding 80 years and more.^iv  

The U.S. faces stark realities, including high obesity rates and a prevalence of chronic conditions like diabetes and coronary heart disease, underscoring the need for prioritizing health improvements at governmental, industrial, and individual levels. By emphasizing early disease assessment and interception, the healthcare system can reduce the prevalence of chronic conditions such as diabetes and heart disease. This shift requires collaboration across sectors, including healthcare providers, policymakers, and the life sciences industry, to embrace preventative strategies and support a healthier population. Embracing these changes could position the industry to take advantage of these new opportunities and drive advancements in healthcare by embracing the preventative strategies that will support a healthier population. 

The Role of Agentic AI in Revolutionizing Healthcare 

Artificial intelligence, particularly agentic AI, holds significant promise for transforming healthcare. Agentic AI mimics human decision-making and operates independently, designed for problem-solving and improving efficiencies. This technology can integrate and analyze data from various sources, such as patient records and sensors, enhancing diagnostic accuracy and reducing human error in early disease detection. By seamlessly linking processes like remote monitoring, treatment decisions, and medication dispensing, agentic AI can create a virtual learning health system, potentially lowering operational costs and improving patient outcomes. 

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However, the adoption of agentic AI in healthcare comes with challenges. Regulatory and technical hurdles must be addressed, and collaboration between AI developers and healthcare stakeholders is crucial. While the potential benefits are immense, including earlier disease detection and personalized treatment plans, achieving this vision requires a concerted effort to overcome these obstacles. The promise of agentic AI lies in its ability to fundamentally improve healthcare delivery, making it an area worthy of anticipation, encouragement, and support. 

Building Trust and Reducing Costs: Life Sciences Challenges 

 In January 2025, the IQVIA Institute published their annual report “2025 Indicators of Progress for the Life Science Sector” (available here), highlighting key areas within the healthcare sector where we hope to observe positive advancements. While the report identifies ten critical areas, two areas of macroenvironmental focus most relevant to brand marketers are the need to increase the levels of public trust in life science companies as well as reducing patient out-of-pocket costs as a barrier to therapy starts and adherence.  

Public trust in the pharmaceutical industry is currently low, with only about 20% of the population expressing confidence in the annual 2024 Gallup Survey. This lack of trust has been exacerbated by the pandemic and poses significant challenges, including political resistance and hesitancy towards vaccinations and therapeutics. While this will not change overnight, any positive momentum observed between now and the 2025 Gallup survey^v will be critical to demonstrate that public trust is rebounding, which is paramount not only for sustained industry growth but for the collective health of US patients. 

Another critical area highlighted is the issue of patient out-of-pocket costs, which remain a significant barrier to many in accessing necessary medications. This potentially contributes towards the public perception of the industry even as more than 90% of prescriptions cost patients less than $20 in 2024, with the share of free prescriptions growing to 46% in 2024 from 32% in 2019^vi. However, 79 million prescriptions cost patients over $125 in 2024vii, often leading to criticism of the pharmaceutical industry, despite the complex interplay of pricing structures and intermediaries.  Addressing these issues is essential for improving patient access and satisfaction, and for reducing pressure from policymakers. 

Conclusion 

In conclusion, the U.S. pharmaceutical market is on a promising trajectory, driven by innovation, preventative care, and the transformative potential of technologies like agentic AI. However, to ensure sustainable growth and improved health outcomes, the industry must address critical challenges such as rebuilding public trust and reducing patient out-of-pocket costs. By embracing these opportunities and fostering collaboration across sectors, the life sciences industry can play a pivotal role in shaping a healthier future for all. 

ⁱ IQVIA Institute for Human Data Science. Global Trends in R&D 2025: Progress in recapturing momentum in biopharma innovation. March 2025. Available from www.iqviainstitute.org 

ⁱⁱ IQVIA Institute for Human Data Science. Understanding the Use of Medicines in the U.S. 2025: Evolving Standards of Care, Patient Access, and Spending. April 2025. Available from www.iqviainstitute.org 

ⁱⁱⁱ https://www.statista.com/statistics/268826/health-expenditure-as-gdp-percentage-in-oecd-countries/ 

^iv https://www.cdc.gov/nchs/products/databriefs/db521.html 

^v Gallup. "Grocery, Restaurant Industry Images Slide in U.S." Gallup, September 12, 2024. Accessed April 29, 2025. https://news.gallup.com/poll/650318/grocery-restaurant-industry-images-slide.aspx. 

^vi IQVIA Institute for Human Data Science. Understanding the Use of Medicines in the U.S. 2025: Evolving Standards of Care, Patient Access, and Spending. April 2025. Available from www.iqviainstitute.org