For healthcare and life sciences businesses, policy uncertainty is more than a planning challenge.
Reliant on government funding and operating in a highly regulated environment, companies must often make long-term commitments to research, product development and investment.
Changes in political priorities or regulatory requirements can have significant implications for costs, growth and long-term strategy.
And the pressure is already being felt.
Policy shifts are putting long-term plans on hold
Our latest global research report, The mid-market maze, found that more than two in five healthcare and life sciences leaders (44%) agree that back-and-forth shifts in regulation and tax policy are preventing their businesses from making long-term plans.
Meanwhile, 38% say their organisation has already delayed or cancelled major investments because of uncertainty caused by rapid policy changes.
For some, the potential consequences are even more severe.
Nearly a quarter (24%) of leaders say pendulum politics could push their business to the brink of failure.
More broadly, 52% identify geopolitical instability and pendulum politics as a major barrier to their organisation achieving its full potential over the next decade. 45% site regulatory or compliance constraints as a major barrier.
These concerns are influencing whether companies invest and where they do so.
A sector considering relocating
Almost a third (31%) of leaders are considering relocating operations to markets with more predictable tax and regulatory environments.
This suggests that regulatory stability is becoming an increasingly important consideration in location decisions, alongside traditional factors such as access to capital, talent and markets.
And leaders don’t expect these pressures to ease.
of leaders are considering relocating operations to markets with more predictable tax and regulatory environments.
Regulation is set to become more demanding
Over half (59%) believe global regulation will continue changing rapidly to keep pace with social and technological developments over the next decade, while 51% expect the same pattern within their own territory.
For businesses operating across multiple jurisdictions, this points to a challenging combination. Leaders will need to remain alert to policy developments while building the flexibility to respond without repeatedly disrupting their long-term plans.
Turning compliance into a competitive advantage
Our survey findings also reveal an opportunity for organisations willing to take a more strategic approach.
Faced with increased regulation and compliance burdens, 38% of healthcare and life sciences leaders would prioritise investment in innovation and technology to turn compliance into a competitive advantage.
Similarly, 40% would invest in artificial intelligence-driven compliance tools and strategic partnerships.
Regulatory capability may therefore become a source of differentiation rather than simply a cost to be managed.
Leadership will determine who adapts
Making this shift will require more than technology alone.
Leaders will need to make decisions amid uncertainty, balance immediate compliance demands against long-term investment, and give their organisations the confidence and flexibility to adapt.
Our research underlines the importance of these capabilities: 87% of healthcare and life sciences leaders say the ability to lead through uncertainty will be critically or very important in the decade ahead.
Organisations that combine regulatory preparedness with technological investment and adaptable leadership will be better positioned to manage disruption and potentially turn compliance into a source of long-term advantage.
Explore what the next decade may hold, the growth opportunities that may emerge, and the leadership behaviours required to thrive.
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