How Trump’s Policies Are Shaping Biotech
The second Trump administration is accelerating approvals for some therapies while tightening research budgets and reshuffling the FDA. Here’s how the impact breaks down across biotech sectors — and which companies are feeling it most.
Regulatory Upheaval
Staffing turnover and policy swings at the FDA are forcing smaller firms to move trials overseas. Viking Therapeutics and Adicet Bio have both postponed U.S. trials, citing timing uncertainty.
Reuters reports a rise in offshore clinical studies since spring 2025.
Funding Contraction
NIH grant cuts and tighter venture conditions have slowed pre-clinical research. Eikon Therapeutics reduced staff by 15%, while Allakos and Rubius Therapeutics halted programs awaiting funding.
BioPharma Dive notes biotech funding fell 57% in mid-2025.
Manufacturing Mandates
“America-First” rules and import tariffs are squeezing margins. Pfizer and Eli Lilly were pressed to expand U.S. production. Smaller biotechs face delays and higher costs sourcing U.S. ingredients.
Reuters confirms domestic-manufacturing directives across pharma.
Investor Outlook
Deregulation may accelerate commercial approvals for late-stage products, but instability in R&D funding threatens the innovation pipeline. ScanScor’s Biotech Prediction Engine continues to monitor trial relocation, capital flows, and insider activity for predictive scoring.
Further Reading
- CBO: Research Cuts May Reduce Future Drug Launches
- Axios: China’s Biotech Boom Leaves U.S. Catching Up
- TIME: Will Trump’s Executive Order Lower Drug Prices?
- DLRC Group: Five FDA Changes Affecting Biotech
Published by ScanScor.com — The Biotech Prediction Engine.