Public Health Infrastructure and Global Market Stability: Navigating Biopharma and Health-Tech Investment Risks Amid U.S. CDC Restructuring

The U.S. Centers for Disease Control and Prevention (CDC) has undergone significant restructuring in 2024 under the Trump administration, reshaping public health infrastructure and triggering ripple effects across global markets. These changes, coupled with policy shifts prioritizing deregulation and domestic manufacturing, are creating both risks and opportunities for the biopharma and health-tech sectors. Investors must now navigate a complex interplay of regulatory uncertainty, supply chain reconfigurations, and technological innovation to assess long-term stability in these markets.

CDC Restructuring and Policy Shifts: A New Paradigm

The Trump administration’s 2024 CDC restructuring, led by Robert F. Kennedy Jr., has emphasized decentralizing healthcare decision-making and reducing federal oversight [2]. This aligns with broader executive actions, including the withdrawal from the World Health Organization (WHO) and a pause on U.S. contributions to global health programs [1]. Such moves signal a pivot toward “America First” policies, prioritizing domestic pharmaceutical manufacturing and market-driven solutions. While this could streamline regulatory pathways for drug approvals—particularly for rare diseases and advanced therapies—it also risks fragmenting global health collaboration and destabilizing international funding for public health initiatives [2].

The Inflation Reduction Act (IRA) further complicates the landscape by introducing Medicare price negotiations, which are expected to alter biopharma revenue models. For instance, the IRA’s “pill penalty” grants biologics 13 years of market exclusivity before Medicare can negotiate prices, compared to 9 years for small molecules [3]. This has prompted companies like AstraZeneca to shift R&D focus toward biologics to mitigate financial risks [3].

Biopharma Sector: Risks and Strategic Adaptations

The biopharma industry is grappling with dual pressures: cost-cutting measures and regulatory uncertainty. Major firms such as AC Immune, Novartis, and Pfizer have implemented workforce reductions to extend cash runways and refocus on core programs [1]. For example, AC Immune cut 30% of its workforce to prioritize tau-targeting therapies and NLRP3 inflammasome research [1]. Meanwhile, Pfizer’s second-quarter 2025 results highlighted strategic cost savings and an accelerated R&D pipeline, despite declining revenues from pandemic-era products like Comirnaty [4].

Investors must weigh these operational adjustments against broader policy risks. The Trump administration’s push for expedited FDA approvals could boost innovation in niche therapeutic areas but may also raise concerns about the misuse of incentives like the Orphan Drug Act [5]. Additionally, reduced emphasis on ESG compliance under the new administration could simplify U.S. regulatory requirements but create challenges for global firms adhering to stricter international standards [5].

Health-Tech Opportunities: Deregulation and Digital Transformation

The health-tech sector, however, appears poised for growth amid these shifts. Deregulation and the “new normal” of post-pandemic healthcare delivery are accelerating the adoption of digital tools. Telemedicine, AI-driven diagnostics, and home-based care solutions are projected to dominate the 2024–2025 landscape, with the global digital health market expected to expand from $427 billion in 2025 to $1.5 trillion by 2032 [6].

Key drivers include rising demand for convenience, advancements in AI (e.g., 77% of health executives prioritizing AI investments [6]), and regulatory flexibility. For instance, the FDA’s potential adoption of real-world evidence (RWE) for drug approvals could fast-track market access for innovative therapies [2]. However, a fragmented regulatory environment—where states gain more autonomy in healthcare policy—may create compliance challenges for health-tech firms operating across multiple jurisdictions [6].

Case Studies: Adaptation in Action

CASI Pharmaceuticals exemplifies strategic adaptation, advancing its CID-103 program for organ transplant rejection while divesting non-core assets in China to focus on U.S. markets [5]. Similarly, Eli Lilly’s European regulatory victory for its Alzheimer’s drug Kisunla underscores the importance of navigating complex approval pathways [3]. These cases highlight the need for agility in an era of rapid policy shifts.

Conclusion: Balancing Risks and Rewards

The U.S. CDC’s restructuring and associated policy changes are redefining the biopharma and health-tech sectors. While deregulation and domestic manufacturing incentives present opportunities for innovation and growth, investors must remain cautious about regulatory fragmentation, global funding gaps, and the long-term implications of the IRA. Companies that prioritize operational resilience, leverage expedited approval pathways, and embrace digital transformation are likely to thrive in this evolving landscape.

As the global market adjusts to these shifts, the interplay between public health infrastructure and economic stability will remain a critical factor for investors. The coming years will test the adaptability of firms and regulators alike, with the potential to reshape healthcare delivery and investment paradigms worldwide.

Source:
[1] Congressional Research Service (CRS) report on CDC budget and policy directions, 2024–2025 [https://www.congress.gov/crs-product/R47207]
[2] Overview of President Trump’s executive actions on global health [https://www.kff.org/global-health-policy/overview-of-president-trumps-executive-actions-on-global-health/]
[3] US drug pricing overhaul: The Inflation Reduction Act (IRA) and the Executive Order (EO) on Most-Favoured-Nation (MFN) drug pricing [https://pharmaphorum.com/sales-marketing/us-drug-pricing-overhaul-inflation-reduction-act-ira-and-executive-order-eo-most]
[4] Pfizer Reports Strong Second-Quarter 2025 Results [https://www.biospace.com/press-releases/pfizer-reports-strong-second-quarter-2025-results-and-raises-2025-eps-guidance]
[5] Trump Administration's 2025 Impacts: Pharma & Biotech [https://www.dlrcgroup.com/trump-administrations-impacts-on-fda-regulations-5-key-changes-for-pharma-biotech-in-2025/]
[6] Digital Health Market Size, Trends, Growth, Analysis, 2025–2032 [https://www.fortunebusinessinsights.com/industry-reports/digital-health-market-100227]