7 Biotech Trends to Look Out for in 2019. Fax: (610) 924-9339 The issue is also compounded by the decrease in average peak sales per asset.9, Policy and regulatory activity: More than half of respondents listed policy and regulatory activity as a top issue. The Pharmaceutical Market revenue was xx.xx Million USD in 2014, grew to xx.xx Million USD in 2018, and will reach xx.xx Million USD in 2023, with a CAGR of x.x% during 2019-2023. RELATED: "Hot" Research Areas in Drug Discovery - 2019 . View in article, Greg Reh and Mike Standing, Survey finds biopharma companies lag in digital transformation: It is time for a sea change in strategy, Deloitte Insights, October 4, 2018. View in article, Jeff Morgan et al., RWE focus is shifting to R&D, early investments begin to pay off, Deloitte Insights, June 11, 2020. Leaders can incentivize the organization to take informed risks, learn quickly from failures, and rapidly scale successes. 1 Yonge Street, Suite 1801 View in article, Mark Steedman et al., Ten years on: Measuring the return from pharmaceutical innovation 2019, Deloitte, 2020. She is based out of the Rosslyn office in Arlington, VA. Jeff Ford, principal, Deloitte Consulting, has led numerous engagements with life sciences clients to overcome challenges related to growth and innovation. They need an organization that will thrive in today’s market while simultaneously preparing for the next market disruption.Most pharma companies have business models that are focused on certain geographies and customers. This may include immunotherapies, gene therapies, and other innovative treatments for a slew of intractable diseases. The US remains – by quite a large percentage – the world’s largest market for over-the-counter and prescription medication: it is a territory where companies can make huge profits due to the lack of regulation regarding pricing and market access when compared to other countries that have more stringent pricing regulations. Induced pluripotent stem cells (iPSC), CRISPR/Cas9 and other c… A 2019 Deloitte study points out that while biopharma companies made significant R&D investments to innovate in the last 10 years, the returns declined significantly during that same period—from 10.1% to 1.8%. Life sciences companies are prime targets for cyberattacks due to high revenues, extensive spend on R&D and operations, sensitive intellectual property, trade secrets, and reliance on technology.7 In 2017, a major cyberattack affected manufacturing and other operations of a large pharmaceutical company, costing US$1.3 million in losses.8, Adequate returns on innovation: More than half of respondents cited adequate return on innovation as an issue. have experienced a growth surge in pharma sales. (For details on the survey methodology, see sidebar, “Methodology.”) COVID-19 has presented challenges to many aspects of pharma companies, but the focus on new technologies and data and value creation remains. However, many brand-name patents (such as the blockbuster drug Humira) protect against biosimilar intrusions for financially competitive reasons. While many biopharma companies are experimenting with digital, most have not yet made consistent, sustained, and bold moves to take advantage of new capabilities. This model can require a dedicated team to assess, deploy, and evolve a portfolio of partnerships. R&D for the pharmaceutical industry is moving towards a more value-based, less is more model. There are fewer large project schemes coming through the pipeline. Jessica Overman, Deloitte Services LP, is a senior research analyst with the Deloitte Center for Health Solutions. Additionally, here’s what our analysis found: The data comes from two different sources. Survey respondents included individuals in the following roles: chief executive officer (CEO), chief operating officer (COO), chief commercial officer (CCO), and EVPs/VPs business/corporate development of 60 biopharma companies (~60% companies with revenue more than US$1 billion and less than US$5 billion). Being deliberate about the intent of these hubs can support a more progressive culture that empowers those willing to march on to the next frontier. This article focuses only on the results for biopharma companies; insights on the results for medtech companies can be found here. Increased investment in and deployment of home-based health technologies are creating new opportunities for biopharma companies to create value. He is currently on faculty at the Haas School of Business, where he teaches health care finance and commercialization of biotech to MBA students. Pharmaceutical industry overview: US. But China is not the only source of innovation and growth; many companies are focusing on growth in the EU region and other parts of the global economy, sometimes through direct market entry, or out-licensing.13. Findings from our analysis of transcripts from investor calls for 38 biopharma companies found that between Q4 2019 and Q1 2020, statements continue to focus on consumers and profit (figure 2). He regularly works with corporate leadership to identify new market opportunities, build new organizational models for growth, and transition between business models. Even as many of these companies are focusing on therapies and vaccines for the pandemic, leaders should think strategically about their investments—in terms of therapeutic area, digital technologies, and talent—in order to thrive in the future. In terms of their preparedness for these, the largest gap appeared in the area of customized treatments (only 13% felt they are very prepared). Some companies have said that the pandemic has forced them to provide immediate attention to existing priorities (e.g., R&D, digital transformation, cyber). The text analysis used relevance analysis of keyword/ontology and natural language processing. Pharmaceutical Industry Trends for 2019 Trend #1: Sales growth is slowing Given the ever more daunting market access challenges to pharmaceuticals in established or developed territories, such as the US and Europe, it is hardly surprising these markets are reaching some degree of saturation. Leaders of pharma companies are in the midst of unprecedented change. Our top priority right now would be to be more available on social platforms in order to reach our customers. From a talent perspective, conquering the next frontier will likely require new talent and organizational structures to effectively play in the world of today and tomorrow simultaneously. EFPIA Key Data | 2019 4 65.2% 9.3% Pharmerging comprises 21 6.3% 17.7 % Pharmerging Japan Europe (Top 5) Rest of the World USA 1.5% MAIN TRENDS The research-based pharmaceutical industry can play a critical role in restoring Europe to growth and This study would not have been possible without our survey participants. View in article, Milken Institute, “COVID-19 treatment and vaccine tracker,” July 27, 2020. She holds 11 years of experience in consulting, strategy, and business research in the life sciences and health care industries. Top 5 Trends in Pharma Industry. The outlook on the pharmaceutical industry is negative, mainly due to continued pricing pressure on both branded and generic pharmaceuticals and the possibility of major debt-financed acquisitions at big pharma and biotech to address product pipelines. The emerging markets have increased spending power and are launching more and more new pharmaceutical products globally. These fast-industrializing emerging markets are experiences an average drug spending growth rate of 12.8% per period, more than twice the rate of average global growth. In the past, pharma companies knew the most about their products. Innovation starts with insight and seeing challenges in a new way. Companies believe that transforming functions using digital technologies will be of high strategic priority in the next five years. While these challenges continue to disrupt the industry, the pandemic has also propelled multiple partnerships to develop a COVID-19 vaccine. It is, however, an issue that will likely return. Through her research, she helps inform Deloitte’s health care and life sciences clients about emerging trends, challenges, and opportunities. With the upcoming election and pressure on state and federal budgets, the issue could well rise in prominence later this year. 1. Between 2019 and 2024, worldwide prescription drug sales are projected to have a positive CAGR of 6.9 percent with sales expected to reach US$1.18 trillion. Additionally, globally, social unrest around racism issues is increasingly calling on leaders to develop, implement, and sustain new initiatives. As pharmaceutical industry leaders look to the coming months, there will be even greater opportunities for transformative growth as the landscape continues to evolve and take shape. For example, many multinational players who formerly regarded China primarily as a source of raw materials or research are now viewing China as a key market. traditional pharmaceutical business model. 1005 Pontiac Road, Unit 364 Once regarded as costly gimmicks, artificial intelligence (AI) applications are rapidly becoming prime drivers of efficiency for forward-thinking pharma companies. Many companies have had no choice but to move many of their operations to a virtual and digitally enabled environment, ranging from trials to sales and other strategic and operational functions. While COVID-19 has fueled investments in digital R&D and customer engagement, it has also accelerated the transformation of health care delivery. Findings from a new survey and analysis of investor calls in the first half of 2020, Change in consumer behavior prompting a change in strategic thinking, Strategic priorities include R&D, establishing presence in global markets, and transformation of functions using digital and information technologies, Digital maturity: Investments rise, but many aren’t there yet, The future of health for biopharma companies in the decade ahead, “Considering the pandemic, the world is witnessing, strategies for drug development is our focus. These results are consistent with the survey findings—consumer behavior is a top issue. The second is a text analysis of investor statements from the largest pharma companies in the last quarter of 2019 and the first quarter of 2020. To change the narrative, they may need to commit to a cultural shift that incentivizes deliberate risk-taking rather than maintaining the status quo. 7 biopharma trends to watch in 2019. Biopharma companies and regulators are exploring opportunities to work together to streamline the drug development and review processes, which could lead to the emergence of new business models. A Potential Decrease in Certain Drug Costs Recently, President Trump proposed changes to Medicare costs that look eerily similar to external reference pricing that is employed by more socialized healthcare systems around the world. But while this work on therapeutics and a vaccine is on companies’ to-do list, some of them said that the pandemic has compelled them to focus on immediate and existing priorities (e.g., R&D, digital transformation, cyber) across therapeutic areas and functions. Pricing At Deloitte, her research focuses on perspectives that allow clients to anticipate, prepare for, and respond to what’s coming next. In 2019-20, exports grew to US$20.5 billion. In general, respondents rated customized treatments and nonpharmacological interventions as having the biggest impact on the life sciences industry in the next 10 years (figure 5). FDA continues to accelerate development of novel therapies for COVID-19, Opportunities in China’s pharmaceutical market, Medtech leaders prioritize technology and consumers, RWE focus is shifting to R&D, early investments begin to payoff. Economic uncertainty is growing, data science and artificial intelligence (AI) are primed for breakouts, costs are rising, and resources are limited. Pharma Marketing Trends Expected to Evolve in 2019. Access and Affordability In terms of market access, the rising cost of healthcare is being met by increasing demands for new evidence and definitions of positive health outcomes. Please see www.deloitte.com/about to learn more about our global network of member firms. However, uncertainty remains regarding drug pricing in the world’s largest market, the United States. Nine next generation biotherapeutics (NGB) have been launched already. Evolving technologies, including blockchain, can help facilitate data interoperability, so that patient data can be more easily used for holistic and longitudinal analysis of health outcomes. The UK pharmaceutical industry plays host to a wide variety of industry events, spread over each calendar year. An intelligence report has been added to the portfolio of WiseGuyReports titled, “2019 Global and Regional Bio-Pharmaceutical Logistics Market Research Report Forecast 2025”. View in article. View in article, David Voreacos, Katherine Chiglinsky, and Riley Griffin, “Merck cyberattack’s $1.3 billion question: Was it an act of war?,” Bloomberg, December 3, 2019. Precision medicine involves treating a patient according to his or her disease-causing genetic mutations instead of a disease label such as “melanoma” or “pancreatic cancer.” It’s been a massive paradigm shift. The current COVID-19 crisis will bring more challenges into the picture and is likely to impact our goals in many areas.”, “We are not prepared for meeting rising customer expectations. In addition, the US Food and Drug Administration (FDA) has, in partnership with the biopharma industry, introduced many regulatory changes around approving COVID-19-related treatment research. The reports also enumerate the numerous challenges that the X-ray Food & Pharmaceutical Inspection Equipment market is projected to encounter in addition to the effect of these challenges on the industry trends. Email a customized link that shows your highlighted text. Data-driven approaches have the potential to create value across manufacturing, the supply chain, and the entire health care ecosystem.”1. [($1000-$200) x.1] 24 out of the 32 countries that belong to the EU use reference pricing in combination with other pricing regulations or by itself. One way that companies are addressing this strategic priority is through explicit patient-centric strategies. He has deep experience developing therapeutic area strategies, care coordination models, and patient engagement approaches. Address this challenge by creating digital teams located in Silicon Valley, limited. Your highlighted text Cornell University ; companies should prepare for risk but not let it hold them.! 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