REDWOOD CITY, Calif., Feb. 10, 2026 (GLOBE NEWSWIRE) -- Model N, the leading end-to-end commercialization, revenue optimization, and compliance platform for life sciences companies, released its eighth annual State of Revenue Report. The report finds that life sciences manufacturers continue to face rising gross-to-net (GTN) complexity, driving the widening gap between list and net prices. It also underscores the growing regulatory ambiguity and the persistent lack of real‑time visibility into data, which are hindering manufacturers’ decision‑making.
Based on a survey of more than 400 leaders at pharmaceutical and medical technology companies – each with annual revenue exceeding $250 million – nearly all life sciences leaders say GTN has become more difficult to manage as pricing, rebate, and compliance demands continue to expand.
Life sciences companies are navigating growing uncertainty tied to evolving federal and state pricing policies. These findings come as Medicare implements new drug prices under the Inflation Reduction Act, with additional therapies slated for negotiation in 2026.
“Effective revenue management in life sciences requires navigating increasingly complex pricing programs, rebate models, and regulatory requirements,” said Bret Connor, CEO of Model N. “When manufacturers lack integrated gross-to-net data and timely insights, they are forced to make critical decisions without all the facts. Model N gives companies the technology, data, and expertise they need to manage this complexity with confidence.”
GTN Complexity and Policy Pressure Shape Revenue Priorities
Nearly all respondents (99%) say GTN has become more complex, with 61% identifying pharma benefit managers (PBMs) as the leading contributor.
Medicaid participation is also under heightened scrutiny. Eighty-nine percent of life sciences companies have evaluated their participation in Medicaid programs, and 37% have seriously considered withdrawing.
Additionally, the report highlights a widening confidence gap in audit readiness. Fifty-one percent of companies with more than $5 billion in revenue say they are fully confident they could withstand a detailed audit of government and commercial programs. Only about one-third of smaller companies ($250 million to $5 billion) report the same level of confidence.
AI Use Is Widespread, But Data Access Limits Impact
Nearly all life sciences leaders (97%) report using AI for revenue management, and adoption is expected to reach over 99% within two years. However, fewer than 30% have fully integrated GTN data across pricing and reimbursement programs, and only 1% have real-time visibility into Medicaid and Medicare rebates, 340B discounts, and utilization rebates. Nearly all respondents say they could make better revenue decisions with access to just-in-time data and analytics.
“Model N estimates that gaps in pricing, rebates, and compliance result in well over $50 billion in lost revenue each year for U.S. life sciences companies,” Connor added. “Avoiding this leakage could help life sciences innovators invest even more in research and development, enabling them to bring new therapies to market. We are committed to helping customers close these gaps, and our purpose-built solutions enable them to manage this complexity with precision.”
The full 2026 State of Revenue Report is available from Model N.
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More about the 2026 State of Revenue Report
This report, commissioned by Model N with research conducted by Dimensional Research, is based on the results of a survey of more than 400 strategy and finance, operations, and technology leaders who are directly responsible for revenue management at large pharmaceutical and medical technology manufacturers.
About Model N
For more than 25 years, Model N has been the leader in end-to-end commercialization, revenue optimization, and compliance for pharmaceutical, medtech, and high-tech innovators. With a focus on innovation and customer success, Model N helps manufacturers streamline their revenue operations and remain compliant, empowering them to deliver life-changing products to the world. Our intelligent platform, purpose-built solutions, and advanced analytics and AI automation are trusted by more than 150 of the world’s leading companies across more than 120 countries. For more information, visit www.modeln.com.
About Dimensional Research
Dimensional Research® conducts market research for technology companies, delivering findings that help organizations understand industry practices, customer needs, and operational challenges.
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