Midyear 2026 Industry Report: Taking Stock of Pharma Manufacturing, AI, and Regulatory Trends

As the pharmaceutical industry crosses the midpoint of 2026, the landscape is defined by a complex interplay of rapid technological advancement, shifting geopolitical alliances, and evolving regulatory frameworks. Following a series of interviews conducted in July 2026 with seven pharmaceutical manufacturing and development experts, a clear picture emerges: while the industry has embraced the potential of next-generation modalities and AI, the "last mile" of execution—particularly regarding regulatory compliance, data consistency, and organizational readiness—remains a formidable hurdle (Continued below the infographic - click to enlarge).

This report synthesizes these expert perspectives to provide a comprehensive look at the trends defining H1 2026 and the challenges awaiting the industry in the final months of the year.

We also wanted to hear from you. Findings from a poll of our LinkedIn followers reflect the core tensions identified by the seven experts in their midyear 2026 assessments, particularly regarding the gap between technological potential and operational reality (Table).

I. The Rise of Next-Generation Modalities: ADCs, AOCs, and the GLP-1 Surge

The first half of 2026 has seen a significant surge in the development of complex biologics and bioconjugates. Campbell Bunce, CSO of Abzena, notes that his earlier predictions regarding the rise of these molecules have been largely borne out by clinical progress and regulatory approvals.

"We're seeing a lot of excitement, a lot more investment, in these next-generation molecules, and we're seeing that kind of borne out in the clinic and through some of the approval processes as well," Bunce observes.

Bunce specifically highlights the "surge in ADCs" (antibody-drug conjugates), noting that there are now approximately 23 approved ADCs worldwide. Recent milestones include the approval of AbbVie’s Decnupaz, an anti-CD123 conjugate for dendritic cell neoplasia, which utilizes a novel PPD dimer toxin payload. Beyond traditional ADCs, the industry is witnessing intense interest in antibody-oligoconjugates (AOCs), with companies like Avidity and Dyne progressing treatments for muscular dystrophies (Figure 1).

Bunce predicts this trend will only strengthen as biotechs face immense pressure to reach "value inflection points" by securing patient safety and efficacy data quickly. To meet this demand, CDMOs are shifting toward high-throughput "front-end design" processes and integrated manufacturing platforms that truncate timelines by combining protein production and conjugation activities.

Simultaneously, the "GLP-1 boom" continues to reshape manufacturing priorities and patient access models. Mike Stenberg, vice president of Business Development at LGM Pharma, points to the rapid normalization of direct-to-consumer (DTC) and telehealth channels as a major development in how patients access these drugs.

"The biggest story for me is what's spilling over into how people access these drugs. Direct-to-consumer platforms have gone from a novelty to nearly universal in under two years,” Stenberg states. “Meanwhile, we continue to see new routes of dosage administration being explored."

While transdermal and subdermal delivery systems are still in early development, the approval of the first oral solid dose GLP-1s represents a milestone in administration routes. Saharsh Davuluri, CEO and managing director of Neuland Laboratories, adds that while small molecules remain a core modality, the need to invest in new modalities like peptides and oligos is creating a challenge in capital allocation. He notes that Neuland is currently commissioning new peptide manufacturing facilities to meet increasing demand, particularly for large-scale production.

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