For seven straight years, Model N has set out to uncover how life sciences and high-tech manufacturers are embracing opportunities and overcoming challenges in modern revenue optimization and compliance. The resulting State of Revenue Report provides valuable insight that can help business leaders understand the steps their peers are taking to prepare for the year ahead.
The 2025 State of Revenue Report is based on a survey of more than 400 strategy and finance, operations, and technology leaders who are directly responsible for revenue management at large pharmaceutical, medical technology, high-tech, or semiconductor and electronic component manufacturers.
The report reveals that business leaders are leveraging data analytics and modern technology to help them adapt their business-critical revenue processes to today’s market realities.
Data drives decisions – but only some
Ninety-two percent of organizations use data to support many or all of their decisions; however, only 55% of leaders classify their organizations as very data-driven. That’s likely because 9 out of 10 leaders have concerns about the completeness, timeliness, and accuracy of the data they use to support revenue management decision-making.
Technology innovation impacts revenue management outcomes
Life sciences and high-tech companies rely on technology to streamline revenue operations and deliver valuable insights that can shape strategic plans. Sixty-two percent of business leaders use or plan to use generative artificial intelligence (GenAI) to manage revenue, and 42% use or plan to use AI and machine learning.
More than half of life sciences and high-tech companies rely on multiple solutions to manage their revenue operations, and 60% of those organizations indicate that their solutions have limited to no integration. Without unified processes and visibility across the organization, companies have an increased risk of revenue leakage. This lack of integration could be another factor in business leaders’ hesitancy to use data to support all their decisions.
Compliance is on the minds of business leaders
Life sciences leaders expect regulatory issues to impact their organizations over the coming year. For 87% of pharma manufacturers, the Inflation Reduction Act has already affected their launch plans for specific diseases or therapeutic areas. Additionally, 76% of pharma leaders are concerned about the effects state-level regulations, like drug price transparency mandates and affordability boards, could have on their revenue programs.
Nearly all medtech leaders (97%) believe recent regulatory developments, including healthcare pricing transparency, value-based reimbursement models, and the European Union’s Medical Device Regulation, will impact their revenue operations functions.
For 50% of high-tech leaders, monitoring and enforcing contract compliance is one of the top actions they’re taking to attempt to prevent gray market sales. This is a particularly important issue, as 95% of leaders are concerned about the impacts of gray market sales activity.
Find out the full story
The 2025 State of Revenue Report delves deeper into the key challenges facing the life sciences and high-tech industries, the role data plays in optimizing revenue management, and the impacts of technology innovation on this business-critical function. Get your copy of the report for in-depth findings and insights that can help you shape your strategic plans for optimizing revenue and ensuring compliance over the coming year.
