Biopharma financing totaled $28.7 billion in the first half of 2025, marking a 59% decline from the previous year, aligning instead with levels from 2022 and 2023. Med-tech funding, however, showed an 18% increase year-over-year, reaching $16.46 billion. The sector is witnessing consolidation, with companies emphasizing external partnerships and strategic reviews to improve R&D efficiency, as seen at CSL. Tax legislation has restored full R&D expense deductibility retroactive to 2022, potentially supporting innovation. However, staff layoffs and restructuring are on the rise, reflecting ongoing market adjustments.