Cautious optimism. These two words best describe the state of mind of life sciences executives as we enter the second half of 2024. Having experienced one of its hardest-ever years in 2023 – in terms of depressed valuations, public and private fundraising drought, and challenging geopolitical fluctuations – the US life sciences industry is now embracing recovery mode.

Yet, the US continues to dominate the global life sciences industry, and the largest pharmaceutical market in the world attracted numerous foreign players in 2023. US biopharma firms benefit from a supportive ecosystem of service providers but face upcoming challenges, notably from proposed regulatory changes. Amidst growing US-China tensions, the national security matter of domestic drug manufacturing may undergo significant reshaping. Despite challenges, the US keeps drawing on expertise from Ivy League institutions, Wall Street, and California's tech scene to drive innovation and maintain its premier status.

Drawing from almost a hundred interviews with biopharma, biotech, investors, CDMOs, CROs, specialty chemical, technology, and AI executives, the following pages present a comprehensive overview of the US life sciences industry today, and offer insights into the country’s capability to attract foreign capital, talent, and science. The report concludes by pondering the debate on the relationship between viruses and humanity, and how proactive investment in this area can lead to both returns and the well-being of our species.