Geopolitical lock-out emerges as top economic risk for life sciences sector, says Willis
LONDON, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Geopolitical tensions are the top economic risk facing the life sciences industry, according to the latest report from Willis, a WTW business, (NASDAQ:WTW); Managing the new economic risks in life sciences. Based on insights from senior executives and risk professionals across North America, Europe and Asia, the research highlights growing concern that geopolitical rivalry, trade policy and government intervention are increasingly shaping where products are developed, manufactured and sold.
The findings suggest that life sciences companies are navigating a more fragmented operating environment, after the industry had relied on global research networks, international supply chains and cross-border investment. The study also demonstrates how rapidly the risk landscape has evolved since WTW's 2024 study. While pandemic-related issues featured prominently at that time, executives are now focused on issues such as geopolitical fragmentation, pricing pressures and trade uncertainty.
Other key takeaways from the survey include:
- Geopolitical lock-out: Ranked as the industry's leading economic risk, geopolitical tensions could restrict access to key markets, suppliers, research partners and emerging sources of innovation, particularly as governments increasingly view life sciences as a strategic sector.
- US price and payment reforms: Ranked second, executives expressed concern that efforts to align US drug prices more closely with those in other developed markets could reduce industry revenues, change launch strategies and reshape funding models for pharmaceutical innovation.
- Transatlantic divergence: While the US and Europe are seeking greater supply chain resilience and domestic production, differing regulatory, pricing and policy approaches are making it more difficult for life sciences companies to operate across markets.
- Budget competition: medicines vs. beds: Rising healthcare costs, workforce pressures and ageing populations are intensifying competition for public healthcare funding.
- Tariff volatility: Trade policy increasingly influences manufacturing and investment decisions, causing uncertainty and complicating long-term strategic planning.
Sam Wilkin, director of political risk analytics, Willis, said: “Our research suggests companies are no longer managing geopolitical risk as a standalone issue, they are having to factor it into decisions about investment, manufacturing, innovation and market strategy. The challenge for leaders is not simply responding to one-off shocks, but navigating a world where geopolitics is becoming a permanent and central feature of the business environment."
The full report can be downloaded here.
About the survey:
The survey, conducted by WTW and Oxford Analytica, convened a panel of senior executives and risk professionals from life sciences companies in North America, Europe and Asia. The findings involved the identification of five leading risks for 2026-2027.
About WTW
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