SHERIDAN, WYOMING - December 4, 2025 - Life sciences dealmaking is regaining momentum after a period of macroeconomic caution, but new research from West Monroe shows that transaction volume alone will not determine who comes out ahead. Instead, success in the next wave of M&A will hinge on execution speed, AI and digital maturity, and the ability to integrate people and cultures without losing focus on the deal thesis.
Dealmaking Rebounds, but the Rules Have Changed
West Monroe's report, The Next Wave of Life Sciences M&A: Navigating Policy, Power, and Progress, combines practitioner insight with a survey of 250 private equity firms and strategic acquirers in life sciences. The findings point to a clear rebound in activity: 68% of respondents expect more acquisitions in the next two years, while only 7% plan no deals at all.
This renewed appetite comes against a backdrop of macroeconomic volatility and policy uncertainty. Rather than stepping back, leading acquirers are using M&A to reposition portfolios, consolidate capabilities and access innovation. However, the research underlines that traditional playbooks-focused on pipeline, synergies and scale-are no longer sufficient on their own.
"Macroeconomic volatility has pushed many acquirers into a defensive stance, but momentum hasn't disappeared," said Kate Festle, head of Healthcare & Life Sciences M&A at West Monroe and co-author of the report. "Deal volume alone won't win this cycle. The most agile dealmakers are turning uncertainty into an advantage - using policy intelligence to anticipate headwinds and pairing scientific potential and AI with digital rigor to convert that potential into operational performance. Those that can do it faster will capture the upside."
AI Readiness Emerges as a Core Value Lever
One of the most striking findings is how deeply AI is now embedded in deal strategy. AI is central or at least considered in 93% of surveyed transactions, and three out of four dealmakers already report measurable returns from post-close AI investments.
In practice, this means buyers are assessing targets not only for assets and talent, but also for:
- The quality and governance of R&D, clinical and commercial data
- The scalability of digital and analytics platforms
- The maturity of AI use cases across discovery, development and commercial operations
- The ability of the workforce to adopt and operationalize AI tools
Rather than running isolated pilots, leading acquirers are treating AI as core infrastructure. That shifts value creation from one-off cost synergies toward repeatable improvements in pipeline productivity, time-to-market and operating margin.
Policy Headwinds Demand Smarter, Faster Execution
Policy remains a powerful force in life sciences M&A. West Monroe's survey finds that drug pricing reforms and evolving trade rules are among the strongest influences on deal structures and valuations. At the same time, the Make America Healthy Again (MAHA) initiative is viewed twice as positively (29%) as negatively (14%), with one-third of respondents saying it has no impact on their deal appetite.
Rather than stalling transactions, this policy environment is prompting more sophisticated scenario planning. Acquirers are being forced to price regulatory risk into their models, stress-test revenue assumptions and build flexibility into integration plans-particularly around manufacturing footprints, supply chains and pricing strategies. Those that can do this quickly, without slowing down execution, will be better positioned to compete in contested processes.
Integration Discipline Becomes a Strategic Capability
The research makes clear that integration discipline is now a strategic differentiator. Winning dealmakers are:
- Planning integration during diligence, not after signing
- Aligning operating models, data and workflows early
- Setting clear value realisation metrics tied to AI and digital initiatives
- Investing in culture, change management and leadership continuity
For private equity sponsors and strategic acquirers alike, this means treating operations, technology and people as core lenses in every transaction. Deals that look attractive on paper can still underperform if digital capabilities remain siloed or if scientific teams disengage during integration.
A New Playbook for the Next Wave of Life Sciences M&A
West Monroe's findings point to an M&A market that is active but demanding. To capture the upside, acquirers must elevate execution to the same level of importance as strategy, embed AI and data as fundamental value levers, and manage policy exposure with greater precision.
For life sciences leaders, the message is clear: the next cycle of M&A will reward those who can combine scientific potential with disciplined integration, digital readiness and cultural alignment. Those that fail to adapt risk watching value leak away-deal by deal.
Learn more and download The Next Wave of Life Sciences M&A: Navigating Policy, Power, and Progress at https://www.westmonroe.com.