After a whirlwind year of leadership changes inside health agencies, pharma leaders are getting a better sense of regulators’ priorities and placing bets on how new policies will impact the industry in the year to come. 

Anxiety over macroeconomic and policy headwinds — including tariffs and pricing deals — are still top of mind for execs. But as some of the uncertainty fades, positive signs on the market, including the potential for more M&A, are starting to emerge.

The unfolding picture of the biotech market, which has ridden a wave of turbulent ups and downs, is also coming into focus. With that clarity comes more confidence among investors to spin the wheels of innovation with R&D funds.

As pharma looks to its next R&D horizons, AI remains front and center with companies continuing to form new AI-driven research pacts. Earlier this month, GSK announced a $50 million deal to use Noetik’s AI platform and virtual cell foundation models in the hunt for new cancer drugs. And the list of similar deals goes on.

In the coming year, AI is expected to deliver more disruptive innovations throughout various corners of the industry, including clinical trials. 

Several upcoming decision dates could also provide insight into the FDA’s attitude toward drug approvals, which the agency has promised to accelerate. 

Here’s a look at how the industry will take shape in 2026.