The life sciences sector stands at the crossroads of rapid technological advancement and evolving legal landscapes. Against this backdrop, we convened our Life Sciences seminar on 28 October, bringing together experts and stakeholders to discuss the latest developments. As artificial intelligence transforms drug discovery and research, and as global partnerships become increasingly complex, stakeholders must navigate new challenges in intellectual property, licensing, and collaboration. This article explores the critical issues facing researchers, legal professionals, and industry leaders, providing timely insights for anyone operating at the intersection of science, technology, and law. Here are 5 things you need to know:
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#1 2025 US IPO surge: Opportunities, challenges, and sector trends
The U.S. IPO market is witnessing a strong resurgence in 2025, with Q3 marking the highest activity level since 2021. Technology, media, telecom, and cryptocurrency sectors are driving this momentum, while SPACs are staging a notable comeback. September alone saw nearly $8 billion raised, and October added another significant tranche, pushing the year’s total IPO volume beyond 2024 levels.
Although the recent government shutdown temporarily disrupted SEC operations and delayed several IPOs, the situation has now stabilised. Regulatory reviews have resumed, and companies that postponed their listings are re-engaging with the market. Still, macroeconomic uncertainties, such as persistent inflation, volatility around AI-driven businesses, and evolving government policies, continue to influence timing and valuations.
Investment banks anticipate IPO activity will accelerate toward late 2025 and into 2026, fuelled by sponsor exits and strong demand for equity financing. Interest in follow-on offerings and convertible bonds is also rising, while robust aftermarket performance continues to encourage more companies to pursue public listings.
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#2 Funding strategies for biotech: Overcoming capital challenges
Biotech and life sciences companies face persistent funding challenges due to their capital-intensive nature and ongoing investment needs. The sector actively pursues a range of financing options, including traditional funding rounds, convertible loans, option deals, and non-dilutive arrangements such as royalty agreements. The resurgence in the US IPO market is driving increased financing activity, but investment is increasingly concentrated in highly sought-after assets, making it tough for many other companies to access capital. Venture debt is gaining momentum as banks and providers become more sophisticated, offering a practical way to bridge short-term funding gaps despite higher interest rates and its mixed reputation. Industry leaders stress the value of maintaining flexibility by keeping multiple financing options open, ensuring companies can select the most appropriate solution at every stage of growth.
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#3 Heightened regulations demand agile responses from life sciences firms
Preparation is key as regulatory scrutiny evolves in the life sciences sector. National competition authorities are actively introducing new thresholds, closely reviewing below-threshold transactions and intensifying foreign direct investment regimes, particularly in Europe and the Netherlands. Innovation in life sciences remains firmly in the spotlight, and companies must anticipate and respond to heightened oversight. By proactively monitoring regulatory changes, engaging with authorities, and adapting transaction strategies, organisations can diminish the impact of increased scrutiny. Staying agile and informed empowers businesses to navigate complex merger controls and maintain momentum in a rapidly changing legal environment.
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#4 AI drives transformation in the life sciences sector but brings new challenges to IP protection
Artificial intelligence is transforming drug discovery, accelerating research and reducing costs, but raises complex IP, ownership and regulatory challenges. The decision to patent or keep inventions secret hinges on patent eligibility and the sensitivity of underlying data. Trade secrets are preferred when disclosure would reveal proprietary algorithms or sensitive datasets. Securing patent protection for AI-driven inventions requires, besides novelty and inventiveness, careful navigation of issues such as technical effect, sufficiency of disclosure, reproducibility, and the identification of inventors, especially as only natural persons qualify as inventors.
Where AI models are integral to an invention, applicants may need to reveal significant technical details and training data, balancing transparency with the protection of proprietary information. Furthermore, compliance with the EU AI Act is essential, particularly when AI influences clinical evidence or patient safety, as regulators will demand evidence of transparency, data integrity, and robust human oversight.
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#5 Well-drafted contracts and proactive risk planning are essential for successful licensing and research agreements.
The roundtable reveals that licensing and research collaboration in the life sciences sector present significant complexities. Divergent legal systems complicate life sciences collaborations, affecting contracts, IP rights, and dispute resolution internationally.
Structuring successful partnerships requires a strategic approach to option deals, which maintain flexibility for all parties involved. Joint intellectual property ownership emerges as a challenging area, with practical drawbacks that must be carefully managed. Effective risk sharing depends on a well-considered balance between upfront and milestone payments. Clear contractual terms prove essential to address the differences in licensing approaches across jurisdictions and to prevent common issues in collaborative agreements.
These insights highlight the importance of proactive planning and legal clarity for those engaged in life sciences collaborations.
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