CMO 360 Takeaways: Navigating Complexity and Volatility with Innovation: Part 1
GQR recently attended the CMO 360 conference alongside other R&D Leaders within the Emerging Biotech industry. Below is Part I of II of our key takeaways from the event:
The biotech industry in 2025 is at a pivotal juncture. While scientific advancements continue to accelerate, the recruitment landscape faces multifaceted challenges that require strategic navigation.
1. Rising R&D Spending Amid Economic Uncertainty
R&D spend is increasing by 6-8% annually, while we’re simultaneously experiencing softer global economic conditions and a declining return on development investment. Increases in costs can partially be attributed to the increasing level of complexity of trials, as there has been of trend of therapies being developed for rare and ultra-rare diseases (14% in 2010 versus 41% in 2025) (Source: NIH). This growth reflects the industry's commitment to innovation, even as the return on development investment declines.
2. Shifting Federal Policies and Patent Expirations
Federal funding cuts, NIH overhead rate caps, staffing reductions in federal health services, drug pricing pressures, and increased trade regulations and tariffs are tightening budgets and delaying projects. Additionally, a significant wave of patent expirations is expected to put $50 billion in global sales at risk in 2025, further complicating the landscape (source: Boston Consulting Group).
3. Consolidation and Downsizing Trends
The sector has experienced substantial consolidation and downsizing over the past three years. Annual position eliminations have surged from an average of 1,020 in 2018-2020 to 9,840 in 2023, with a projected 15,134 in 2025. However, this trend does not signal the end for emerging biotech companies, which are expected to outnumber established companies in first-time launches between 2021-2026. (source: Evaluate Pharma, Fierce Bio).
Despite the challenges, there is an exciting future ahead for emerging Biopharmas. Between 2022 and 2026, there are 96 Blockbuster launches projected (each forecasted to exceed $1 billion in worldwide sales), highlighting the potential for significant breakthroughs and market opportunities. Based on pipeline data, it’s projected that first-time biotech launches will outnumber those from established companies by more than two to one (source: McKinsey and Company).
5. Utilization of AI in Clinical Trials and Data Optimization
In an increasingly competitive environment, AI is becoming a crucial tool for biotech companies. AI can optimize clinical trial site selection, assess enrollment speed, evaluate investigator performance, and enhance patient data and reporting. This technology is not replacing jobs but rather making work more efficient and effective.
At GQR, we understand the intricacies of this volatile and unpredictable landscape and can provide strategic talent solutions so that biotech companies remain effective. GQR offers five recommendations for navigating the remainder of 2025:
Strategies for Effective Talent Acquisition:
Partner with Specialized Recruitment Agencies
Agencies with deep industry knowledge can streamline the hiring process and provide access to niche talent pools. We highly recommend collaborating with partners that possess both scientific and business acumen, and have strong industry relationships. Additionally, partners that prioritize a positive experience for both candidates and hiring managers are critical in order to ensure a positive experience for all! Be sure you understand how your partner is going to engage with talent, and ensure there is alignment with your team’s strategy!
Leverage Fractional Expertise
Consider bringing in interim leadership to establish your talent function, or this can be utilized to provide temporary support within your existing process. A little fractional support can have a significant impact on your organization, and can rapidly scale up and down based on your organization’s needs.
Utilize AI Technology and Project Management Tools
Ensure your talent partner uses AI technology and project management tools to maintain rapid and efficient processes and timelines. You can learn more about GQR’s intelligent talent acquisition platform that uses proprietary AI and Natural Language Processing to match you with the best candidates here.
Invest in Employee Experience and Development
Use assessment tools during the talent acquisition phase, after new functional groups are built, and on an annual basis to gain an unbiased view of team sentiment and performance. In 2025, employees are prioritizing flexibility and growth. Regular employee feedback can help identify trends within your organization that might otherwise be missed. GQR offers a talent assessment tool through our partnership with Criteria. You can learn more about Criteria here.
Our dedicated team is committed to connecting innovative biotech companies with the specialized talent they need to drive scientific breakthroughs. Additionally, our senior leadership team is available to provide insights and support:
Nicole Leinders – Divisional Lead
Luke Salter – Commercial Lead
David Marten – Contracts Lead
In Part 2, we’ll be exploring how today’s biotech CMOs are responding to these challenges—reframing development strategies, leveraging AI for efficiency, partnering more closely with the FDA, and building smarter pipelines to improve ROI in an evolving market. Stay tuned!
