Life Science Tools and Diagnostics/CROs: Large Biopharma R&D Scan 1Q26: Stable and Harvesting ex-R&D Productivity Gains

Research evidence excerpt

Life Science Tools and Diagnostics/CROs: Large Biopharma R&D Scan 1Q26: Stable and Harvesting ex-R&D Productivity Gains

Deutsche Bank

Research

North America Industry Date

Life Science Tools and Life Science Tools 15 May 2026 Diagnostics/CROs

and

Diagnostics/CROs

Large Biopharma R&D Scan 1Q26: Stable and

Justin Bowers Harvesting ex-R&D Productivity Gains

Research Analyst

+1-917-517-9836

Portfolio Manager Summary

1Q26 across the large pharma R&D landscape was largely about the status-quo, Sam Martin

with only Gilead explicitly adjusted its full-year R&D guidance upwards and Research Associate

indications of ongoing stable industry investment levels. Domestic capex

investment also remained a theme, with announcements aimed at manufacturing

capabilities and R&D infrastructure, such as AbbVie's $1.4 billion North Carolina

manufacturing campus and Johnson & Johnson's $55 billion US-based

manufacturing, technology, and R&D investment target through early 2029.

Takeda stood out, with plans for a 2026 transformation plan expected to drive

(JPY 100b) and eliminate ~4,500 roles with a restructuring cost of (JPY 170b) to

partially offset the required R&D investments to support the next phase of

company growth.

Pipeline advancements spanned across key therapeutic areas, including

oncology, cardiometabolic diseases, immunology, and rare diseases. In oncology,

companies like AbbVie, Amgen, AstraZeneca, and Bristol Myers Squibb are

advancing therapies and expanding indications. Despite some investor fears on

oversaturation / pipeline trimming (particularly as it relates to our CRO coverage),

the cardiometabolic space is active, with Eli Lilly's FDA approval for Foundayo in

obesity and Novo Nordisk's advancements in high-dose semaglutide and

amycretin.