As health and life sciences companies brace for seismic shifts driven by emerging technologies and global uncertainty, their legal advisors are preparing them for everything from AI-powered disruption to strategic licensing and mergers slowed by macroeconomic headwinds. In the Lexpert Special Edition on Health Sciences, we examine how the legal community is helping the sector chart a course through transformative change – with insights from leading lawyers ranked in the latest Lexpert survey.
AI disruption meets outdated privacy law
Artificial intelligence is transforming healthcare – but it’s also creating new legal and ethical risks, especially around privacy and cybersecurity. Lawyers say the sector is vulnerable due to underinvestment in protective infrastructure.
“Healthcare and life sciences are among the most vulnerable sectors regarding privacy issues,” says Hélène Deschamps Marquis, AI practice lead at Borden Ladner Gervais LLP. She notes that, unlike financial services, the health sector hasn’t kept pace with privacy upgrades.
Incidents like the 2019 LifeLabs breach remain a wake-up call. Deschamps Marquis says her team often helps clients build privacy frameworks to manage risk.
At Smart & Biggar LLP, Melanie Szweras highlights the sensitive nature of genetic and health data: “You may not want people to know certain things and make decisions that adversely affect you based on that.”
A key legal question is whether de-identified data is sufficiently anonymized. If malicious actors can reassemble it, privacy risks persist.
Legislation has struggled to keep up. Federal Bill C-27, which aimed to modernize privacy law and introduce AI regulation, died when Parliament was prorogued. “There is general agreement that many of these laws are outdated,” says Deschamps Marquis.
Miller Thomson LLP’s Kathryn Frelick warns that organizations must “understand the impact of generative and traditional AI and the changing regulatory landscape before implementing these tools in their work streams.” Ethical oversight, impact assessments, and education are critical safeguards, she says.
Licensing gains ground as patent expiries loom
Facing a major patent cliff, biopharma companies are turning to licensing to shore up pipelines. “Licensing has always been one of the core business strategies for biotech and pharma companies,” says Paul Armitage of Gowling WLG.
This time, biologics play a larger role, offering more durability than small molecules. Licensing activity is shifting to later-stage drugs, with a rise in back-end-loaded deals.
Start-ups and academic institutions remain key innovation sources. “Some relatively small Canadian specialty companies can make a meal out of licensing in IP rights,” says Noel Courage of Smart & Biggar.
Davies Ward Phillips & Vineberg LLP’s Shayna Goldman says commercialization agreements often act as “a first step towards M&A,” allowing companies to test a product and partnership before fully committing.
M&A faces headwinds but opportunity remains
M&A optimism entering 2025 has been tempered by geopolitical volatility. “We came into 2025 with real optimism,” says Goldman, but Trump’s re-election and tariff threats have added unpredictability.
With nearly 70 percent of Canada’s medical exports headed to the US, tariff exposure is a real risk. “You’re either going to have to take a loss on the product, or you’re potentially going to lose a sale because it’s more expensive,” says Marcus Hinkley of Gowling WLG.
Still, lawyers are guiding clients through deals using tools like earnouts and rolled equity to bridge valuation gaps. David Frost of McCarthy Tétrault LLP points to regulatory complexity, especially in areas like pharmacy and dental roll-ups, as another challenge.
Yet many see reasons for optimism. “We’re seeing an increase in international interest,” says Goldman. Emma Costante of Blake Cassels & Graydon LLP adds, “Regardless of what people are saying in the market, I have not seen a slowdown in my practice.”
Legal leaders at the forefront
Throughout the Lexpert Special Edition on Health Sciences, you’ll hear from Lexpert-ranked lawyers who are guiding clients through a period of unprecedented change, offering trusted legal insight in a sector where innovation and risk go hand in hand.