ICON plc has released findings from its 2025 global biotech survey, providing insights into industry trends, emerging modalities, and regional developments. The research captures perspectives from more than 260 biotech professionals and venture capital executives across the US, Europe, Asia-Pacific (APAC) and the Middle East, including a focused survey of 100 China-based biotech leaders.

The survey indicates China’s growing influence in the global biotech sector. Deepali Suri, president of ICON Biotech, said: “Biotech is entering a transformative era. Our survey shows China emerging as a global innovation powerhouse, driving collaboration and accelerating R&D. Despite funding pressures and geopolitical uncertainty, confidence remains strong with 92% of leaders expecting to hit their next investment milestone. Three out of four biotechs plan to increase R&D spend in the next two years, signalling resilience and a commitment to innovation even in the face of drug development complexity and change.”

Funding remains a key concern, with 41% of organisations actively seeking additional R&D investment, up 27% since 2023. Large pharma partnerships, venture capital and government grants remain the primary funding sources, though APAC biotechs report higher reliance on VC, at 60% of funding, compared with 32% in the US and 30% in Europe. ICON notes emerging financing models such as royalty agreements, carve-outs, and crowdfunding are increasingly being explored.

Access to skilled talent is another growing challenge. In APAC, 47% of respondents reported talent shortages affecting operations, nearly three times the proportion cited in the US and Europe.

The survey also highlights shifts in therapeutic focus and modalities. Cell therapy has overtaken small molecules, accounting for 40% of pipelines, followed by antibody drug conjugates (ADCs) and microbiome therapies at 31%. Globally, neurology (44%), cardiovascular (39%) and immune disorders (32%) are emerging as key therapeutic areas, compared with previous dominance in oncology.

Respondents identified drug development complexity as a major operational risk, with 73% ranking it among their top five challenges. The adoption of digital tools is seen as a potential accelerant, with 76% of respondents anticipating that AI and related technologies will significantly speed R&D processes in the next two years. AI-enabled asset selection in drug discovery was highlighted by 41% of respondents as having the greatest potential to accelerate development, up from 26% in 2023.

China-focused survey results show similar challenges to global peers, particularly in funding and regulatory complexity, but respondents report greater confidence in investment outcomes. Therapeutic priorities in China remain cardiovascular and oncology, while advanced modalities such as cell therapy, microbiome therapies and ADCs dominate pipelines worldwide.

The findings provide insights for Western biotechs seeking to maintain competitiveness and leverage emerging global trends, particularly in APAC markets.