Life sciences and contract research stocks navigate turbulence in 2025

Life sciences and contract research organizations (CRO) stocks end 2025 on a mixed note amid policy uncertainty and sector-wide funding squeezes under the current Trump administration

Danaher DHR.N, Thermo Fisher Scientific TMO.N, Waters WAT.N, and IQVIA IQV.N posted yearly gains of over 0.5%, 12%, 3%, and 15%, respectively, fueled by resilient core-segment growth and fading policy risks — despite lackluster China demand

TMO and DHR eye an end to a three-year losing streak, while IQV and WAT secure a place in the green for the second consecutive year

While ICON, ICLR.O Avantor AVTR.N, Neogenomics NEO.O, Charles River Laboratories CRL.N and Illumina ILMN.O head for 2025 losses as they faced customer losses, activist pressure, and soft big-pharma demand

ILMN caps a fourth straight losing year, AVTR, ICLR will notch a place in negative territory for the second straight year and NEO snaps a two-year gaining streak

Following several tough years marked by a post-COVID hangover and 2025 headwinds from DOGE, MFN, and tariffs, Jefferies analysts said in a note earlier this month they see life sciences firms poised for recovery next year

Investor sentiment has brightened amid pharma onshoring news and rising biotech funding, while bioprocessing shines as a standout on consumables strength, equipment rebound, and China upside, Jefferies added