The widespread job cuts and regulatory shifts at key US health agencies, including the Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC), are fueling concerns over potential delays in drug and medical device approvals. These developments could destabilize the pharmaceutical supply chain and drive companies to prioritize markets outside the US, where regulatory pathways are more predictable and efficient, says GlobalData, a leading data and analytics company.

Katarina Zahedi, Pharma Analyst at GlobalData, notes: “In addition to staffing changes, the Trump administration has asked the Centers for Disease Control and Prevention to cut its budget by $2.9 billion – roughly 35%. This would potentially divert resources away from essential health programs, including those addressing opioid abuse, maternal health, and cancer screenings. The uncertainty surrounding the CDC’s restructuring proposals raises concerns about the agency’s ability to respond effectively to public health needs.”

GlobalData’s Bio/Pharmaceutical Outsourcing Report, March 2025 says that WuXi AppTec has divested its US and UK operations in cell therapy and medical device testing, while reporting a 5.2% increase in annual revenue despite the ongoing geopolitical tensions and tariff threats between the US and China.

Zahedi concludes: “These sweeping layoffs mark a turning point in the US public health infrastructure. Beyond immediate disruptions to regulatory timelines and public health programs, there is a growing risk that pharmaceutical and medical device companies will redirect innovation pipelines toward markets with more predictable and efficient regulatory environments.

“This shift—coupled with escalating geopolitical tensions—is accelerating the rise of outsourcing and global diversification strategies, particularly in Asia. If left unaddressed, these structural challenges could erode the US’s longstanding leadership in biopharma innovation and public health delivery.”

The Bio/Pharmaceutical Outsourcing Report is a monthly analysis of news and trends affecting pharmaceutical contract manufacturing organizations. The report lists the latest contract manufacturing agreements, opportunities and threats for CDMOs, M&A and financing of CDMOs, and emerging regulatory news.