Nordic Life Science 1
THE CHANGING WORLD // USA PHOTO MATT STOKES “Staf
fing cutbacks at federal agencies will require agencies to do more with less, but I don’t see productivity going down.” TIM OPLER T Tim Opler, Managing Director, Stifel 28 | NORDICLIFESCIENCE.ORG HE YEAR BEGAN WITH a positive outlook within the scientific community. A survey conducted by the Deloitte US Center for Health Solutions in December 2024 indicated that 75 percent of US global life sciences executives were optimistic about the research climate for 2025. But reports published over the past three months describe financial and personnel cutbacks to the sector by the administration of President Donald J. Trump. This included approximately 800 research projects at the US National Institutes of Health (NIH) being dropped due to more than USD 2.3 billion in cancelled funding. Among the areas most affected were research into fundamental biological systems, infectious diseases, and heart and lung ailments, according to STAT. Most recently the Trump administration froze USD 2.2 billion in funds to Harvard University, one of the largest research institutions in the world, due to the university’s refusal to end diversity, equity, and inclusion (DEI) programs and restrict campus protests. The university has filed a lawsuit against the government. The fact that the figures for reductions in funding and personnel levels often change from day to day adds to the anxiety. The perception is worse than the reality The news reports may sound ominous, and many researchers are anxious, but so far, the perception is worse than the reality, says investor Tim Opler, a managing director in Stifel’s Global Healthcare Group, who oversees strategic and financing transactions in a range of healthcare areas. Opler founded Torreya and joined Stifel in 2023 when it acquired Torreya. “The science industry is very uncomfortable and scientists are very nervous,” he says. “But the sector is not bordering on collapse. The budget for the NIH and Centers for Disease Control (CDC) have remained unchanged. People are distracted and fearful and some junior researchers lost funding. All eyes now are on the NIH budget for 2026, because the Trump administration has proposed a 40 percent cut to Congress,” he says. When he talks to researchers, Opler says, they express concerns about budget cutbacks, but when he asks them if they have experienced cuts, they say no. While some NIH grants were eliminated, the agency’s budget was passed intact by Congress, according to Opler. “Academic institutions are concerned about what is going to come,” he continues. Staffing cutbacks at federal agencies will require agencies to do more with less, Opler acknowledges. “But I don’t see productivity going down,” he says. Approvals by the Federal Drug Administration (FDA) are increasing, he says. “The tariffs the US is imposing on other countries also should not affect the cost of pharmaceuticals directly, but could impact the cost of ingredients for some drugs,” Opler adds. Investments in life sciences are increasing, he maintains. “The big picture is that funding for life science research has