Pharma Services at a Crossroads: Where Innovation, Scale, and Leadership Converge

As 2026 approaches, the pharma sector is leaning into innovation, deal-making, and an expanding appetite for broader leadership opportunities. That was the clear takeaway from our conversations with executives and investors during this year’s CPhI conference in Frankfurt. With over 60,000 attendees, the event radiated optimism and forward motion across Pharma Services and the broader Life Sciences B2B landscape.  

As you read on for our key CPhI 2025 insights, we’d love to hear your thoughts—please get in touch with us.

A major theme across the halls was the dual-track strategy emerging in large pharma boardrooms: investing in U.S. manufacturing while sourcing molecules and innovation from other markets, notably China. While announcements of new U.S. facilities are plentiful, some leaders questioned whether all these projects will progress beyond initial groundbreakings—i.e., some skepticism on whether there would be a “second shovel’’ put in the ground, given long design, construction and FDA inspection cycle times. This dynamic calls for CEOs to maintain flexibility and optionality in global production strategies, balancing ambition with execution. 

Contract Development and Manufacturing Organizations (CDMOs) are increasingly differentiated, yet the space just keeps getting more crowded. Small, specialized providers operate in premium niches where biotech clients value speed and reliability over cost. Larger CDMOs face cost pressures and must deliver scale, quality, and U.S. presence. Cost remains a critical factor, for both large pharma and smaller biotech clients, and maintaining safety and compliance is non-negotiable.  

A few investors noted that biotech and pharma deal activity is picking up—with CDMO transactions likely to follow in 12 to 18 months—suggesting CEOs should prepare for strategic shifts and potential consolidation. Private Equity investment cycles have been extended and many investors will be looking to exit their portfolio companies, while holding on to desired valuations.

Executives are showing readiness to take on broader scopes, especially as time horizons in PE-backed firms evolve. This is creating opportunities for leadership movement and fresh thinking.  

However, talent gaps remain—particularly in general management experience and gender diversity at the CEO level of these companies. CEOs should invest in leadership development that builds strategic agility and breadth, using frameworks like Egon Zehnder’s Potential Model to guide succession planning and unlock untapped leadership capacity. See a similar sentiment in our article from 2023.

The conversations at CPhI Frankfurt made one thing clear: Pharma Services and Life Sciences tools, such as drug delivery systems, are entering a new phase of opportunity. Innovation is accelerating, deal activity is stirring, and leadership ambition is rising. But capitalizing on this momentum will require more than optimism—it will demand bold decisions. 

As biotech rebounds and CDMO dynamics shift, CEOs must sharpen their strategic focus: balancing global manufacturing bets, preparing for consolidation, and investing in leadership that can navigate complexity with agility. The next wave of growth will favor those who move early, scale smartly, and lead with vision, building nimble organizations with high ambitions despite not yet knowing which path to take to get there. The opportunity is real—and the time to act is now.