Model N recently commissioned a research study to better understand how pharmaceutical and medical technology leaders are embracing opportunities and overcoming challenges with optimizing revenue and ensuring compliance. Now in its eighth year, the Model N State of Revenue Report discovered the current market forces impacting revenue management, what steps leaders are taking to adapt to the changing regulatory environment, and how companies are using technology and AI to improve revenue outcomes.
This year’s report is based on a survey of more than 400 strategy, finance, operations, and technology leaders who are directly responsible for revenue management at large pharmaceutical and medtech manufacturers. Releasing on February 10, the 2026 State of Revenue Report provides in-depth findings and insights that can help you shape your strategic plans for optimizing gross to net (GTN), address current market challenges, and use innovative technology to achieve strategic growth.
The GTN bubble is real, and it’s likely caused by increasing complexity
According to Adam Fein, Ph.D., president of the Drug Channels Institute, the GTN bubble reached $356 billion in 2024. This growing divide between list prices and net prices has become a strategic concern for life sciences leaders. But closing this gap has gotten significantly more difficult. Almost all (99%) life sciences leaders believe GTN has become more complex in recent years. The report sheds light on the factors contributing to this complexity, providing valuable insights that could shape revenue strategies going forward. Addressing issues early and throughout the GTN lifecycle could have a material impact on profit margins, according to 93% of life sciences leaders.
The evolving regulatory environment creates more risk-averse companies
Over the last five years, leaders have become more concerned about the impacts of non-compliance on their organizations. More than half (53%) of leaders are more risk averse today, and they’re making investments in automation and technology to protect their organization.
Recently, the life sciences industry has seen a flurry of changes in government policies. As with any change, impacts could be positive or negative. This year’s report reveals numerous areas with potential bright spots for the industry.
Find out the full story
Understanding what’s happening in the life sciences industry – and how leaders are adapting to current market realities – can help you find new ways to optimize revenue, grow market share, and reduce risk. Visit www.modeln.com to access the 2026 State of Revenue Report on February 10.
