Health Affairs December 5, 2025
The growing presence of private equity (PE) in the pharmaceutical industry—from contract research to manufacturing—has the potential to reshape how drugs are developed, produced, regulated, and accessed. In 2024, the global value of health care PE deals reached $115 billion, the second-highest year on record. Biopharmaceutical and related services accounted for about $29 billion, or roughly one-quarter of that total. Within this space, PE firms are increasingly acquiring contract research organizations (CROs) and contract development and manufacturing organizations (CDMOs), which pharmaceutical firms rely on for clinical trials, regulatory approval, and production.
While PE involvement can promote innovation and efficiency, it also raises concerns about the stability of drug manufacturing, the resilience of pharmaceutical supply chains, and the long-term integrity of...
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