Industry Outlook 2026: The Impact of Novel Therapies

Why It Matters

The influx of advanced biologics drives higher R&D investment and reshapes CDMO market dynamics, while U.S. on‑shoring enhances supply‑chain resilience and creates new revenue opportunities for capable manufacturers.

Key Takeaways

• Next-gen biologics expanding therapeutic options
• Antibody‑oligo conjugates targeting muscular dystrophy
• ADC approvals accelerating cancer treatment pipelines
• Novartis spent $12B acquiring Avidity
• US on‑shoring boosts CDMO demand for complex biologics

Pulse Analysis

The 2025 drug pipeline was dominated by a wave of next‑generation biologics that combine multiple mechanisms into a single molecule. Bispecific antibodies, fusion proteins and multi‑specific constructs are delivering higher efficacy per dose, prompting a surge in R&D spend across large pharma and biotech. At the same time, antibody‑drug conjugates (ADCs) saw several FDA approvals, reinforcing their status as a cornerstone of oncology therapy. Investors have responded with record capital inflows, and the market valuation of CDMOs capable of handling these complex modalities has risen sharply.

Among the emerging formats, antibody‑oligo conjugates (AOCs) are attracting particular attention. By linking antibodies to therapeutic oligonucleotides, AOCs enable precise delivery of RNA‑based payloads into diseased cells, opening new avenues for genetic neuromuscular disorders such as Duchenne muscular dystrophy. Companies like Avidity Biosciences and Dyne Therapeutics have demonstrated early clinical success, prompting Novartis to acquire Avidity for roughly $12 billion in October 2025. The deal not only validates the commercial potential of RNA‑targeted biologics but also accelerates Novartis’ neuroscience pipeline, signaling broader industry momentum toward nucleic‑acid therapeutics.

The second macro trend reshaping the sector is the strategic on‑shoring of biologics manufacturing to the United States. Geopolitical pressures, coupled with incentives such as the Inflation Reduction Act’s domestic production credits, have spurred pharma companies to relocate or expand U.S. facilities. This shift creates a premium for contract development and manufacturing organizations that can produce high‑complexity products like ADCs and AOCs at scale. Abzena, with established GMP sites in Pennsylvania and California, is well positioned to capture this demand, offering end‑to‑end services from early‑stage design through commercial scale‑up, thereby strengthening its competitive edge in a tightening supply‑chain environment.