More than half (52%) selected transforming business functions. As the world continues to fight the ongoing pandemic, people across the globe are hopefully looking at the pharmaceutical industry for the development of the vaccine and better outbreak control. 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). 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. Ford holds an MBA and an MPH (public health) from UC Berkeley. 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. Pharma leaders are particularly attuned to managing risks, sometimes at the expense of innovating the model to address market evolution. Pharma companies face a range of policy and regulatory issues—activity that affects the pace at which drugs come to market, supply chain and safety, tax, and pricing polices limiting payment rates. traditional pharmaceutical business model. Our people, process, and products have helped produce decades of real-world solutions for a number of complex pharmaceutical needs. We asked respondents to consider five areas that align with our future of health perspective for biopharma companies, with a focus on R&D, since that is one of their long-term strategic priorities (see sidebar, “The five areas”). A recent report found that the pandemic has decreased the number of novel late-stage assets, which already were declining in the last four years.4 The report also shows merger and acquisition activity to be slower in 2020 than other years. 7 biopharma trends to watch in 2019. Meaningful and powerful healthcare transformation is what pharmaceutical companies are now striving for, as innovation can entail a reduction in expensive hospital stays and an improvement in the therapeutic benefits and cost offsets of western medicine. Although executives did not prioritize talent issues, it is a given that a talent strategy will be needed to fully leverage new technologies and be a digitally enabled company, either through recruitment or through partnerships. [($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. have experienced a growth surge in pharma sales. Adoption of Artificial Intelligence (AI) by pharma and biotech Biosimilars have the potential to significantly reduce the financial burden that many brand-name drugs place on insurance entities and consumers. Given such dynamics, pharmaceutical companies are always responding to rapid developments and challenges. 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. In terms of pharmaceutical drugs, pricing remains a … M&A, leveraging digital (including AI) for transforming business, refocusing on therapeutic area strategy, and balancing new opportunity with risk are also being considered important in the next five years. Top 5 Trends in Pharma Industry. has been saved, Biopharma leaders prioritize R&D, technological transformation, and global market presence As we wrote in an article on patient-centricity earlier this year, “companies should not only embrace [a patient-centric] approach, but prepare to participate in an emerging ecosystem where philanthropies dedicated to particular diseases, patient advocacy groups, health plans, health systems and physicians, regulators, competitors, and technology and wellness companies are all better connected so that the patient is at the center.”6, —EVP/VP business/corporate development, biopharma company, Cyber and advances in technology: The next most common issues cited were cybersecurity threats (70%) and advances in technology (68%). The emerging markets have increased spending power and are launching more and more new pharmaceutical products globally. Once regarded as costly gimmicks, artificial intelligence (AI) applications are rapidly becoming prime drivers of efficiency for forward-thinking pharma companies. See something interesting? Pharma companies are up against a fresh set of challenges even as the pandemic has spurred adoption of technologies and other innovations to support virtual work and other functions. Additionally, globally, social unrest around racism issues is increasingly calling on leaders to develop, implement, and sustain new initiatives. View in article, Milken Institute, “COVID-19 treatment and vaccine tracker,” July 27, 2020. Those that are at concept stage are taking much longer in general to progress, with many being placed on-hold. We also analyzed investor call transcripts from 38 of the largest (by revenue) biopharma companies for Q4 2019 and Q1 2020. Find out more at https://www2.deloitte.com/us/en/industries/life-sciences-and-health-care.html. PwC believes that seven major trends are reshaping the marketplace: View in article, Deloitte, “Opportunities in China’s pharmaceutical market,” 2011. 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%. 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. Despite opposition from many pharmaceutical companies, biosimilars are beginning to emerge as a powerful future entity in the world of biologics. A transformational change in R&D productivity is required to reverse this trend. While COVID-19 has fueled investments in digital R&D and customer engagement, it has also accelerated the transformation of health care delivery. COVID-19 may have accelerated investment trends for pharma companies. Biosimilars eliminate a large percentage of clinical trials, as drug processors already know the toxicity profile and biological activity of the drug. Pharmaceutical industry overview: US. 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. Text analysis of those responses found emphasis on words such as “business model,” “collaboration,” and “growth.” Consistent with other findings and the industry trend, leaders and analysts on the investor calls also spent a lot of time discussing “R&D.” Some of the other words that found a prominent mention were “competition,” “regulatory,” “counterfeit,” and of course, “coronavirus.”11. 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. PRG is a full-service pharmaceutical resource and services provider. Nine pharma trends for 2020. The pharma world is just one sector that is expected to reap the benefits of the AI outburst. Published: Dec 26, 2018 By Mark Terry. Generics have identical chemical compositions to brand-name drugs. View in article, US Food and Drug Administration, “FDA continues to accelerate development of novel therapies for COVID-19,” news release, March 31, 2020. 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. Bushra holds a postgraduate business management diploma in international business from the Symbiosis Institute of Management Studies, Pune, and a bachelor’s degree in science from Ambedkar University, Agra. The Deloitte Center for Health Solutions set out to understand these organizations’ strategic priorities, and learned that maintaining and expanding R&D, technological transformation, and their global market presence are their immediate focus areas. The objective was to understand which areas, according to them, will have the biggest impact in the next 10 years. The emerging markets are influencing the global strategy for the pharmaceutical industry due to their exponential growth and high profitability. IQVIA experts have identified ten emerging sectors to be monitored in the next five years, as they might provide a great amount of innovation. Here are some of the biggest 2019 pharma industry trends to look out for. Simply select text and choose how to share it: Biopharma leaders prioritize R&D, technological transformation, and global market presence As 2019 comes to a close, what were the top news stories shaping the pharmaceutical industry globally? While these challenges continue to disrupt the industry, the pandemic has also propelled multiple partnerships to develop a COVID-19 vaccine. Yearly growth rate of R&D spending in pharmaceutical industry 2005-2019. We provide our clients with strategic and tactical solutions that are scientifically based and built upon three distinct characteristics: Expertise, Knowledge and Execution. She holds a BS in public health, and MPH in practice and policy from the University of Maryland. 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. Her recent research has focused on the future of health, drug pricing policies, and digital technology innovation. G… The key is to build an organization that can thrive in today’s market, while being ever ready for the next market turn. Biopharma companies have been racing to discover effective treatments and vaccines for COVID-19. Despite this urgency, bets should be selective and strategic; companies should prepare for risk but not let it hold them back. 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). 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. © 2021. Here are some of the biggest 2019 pharma industry trends to look out for. 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. Most important is selecting the right technologies and integrating them.”, “It is the time of digital presence. With the huge amount of competition and saturation in the marketplace of well-developed markets such as the United States and Europe, pharmaceutical sales growth has experienced a slower increase when compared to previous years; however, emerging markets that demonstrate a need for unmet healthcare necessities (India, Brazil, China, etc.) This study would not have been possible without our survey participants. He holds more than 15 years of healthcare and life sciences experience focusing on growth and innovation and is a leader in our corporate strategy practice. DTTL (also referred to as "Deloitte Global") does not provide services to clients. She holds 11 years of experience in consulting, strategy, and business research in the life sciences and health care industries. Germany introduced this pricing system in 1989 and it quickly spread to other marketplaces around the world. In 2018-19, India’s pharmaceuticals exports were worth US$19.3 billion, showing a growth of 10.72 percent year on year. 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. Although criticism of the pharmaceutical industry is common, both publicly and in political circles, the reality is developing and successfully selling drugs is incredibly expensive and difficult. The report also covers vital aspect like the market concentration ratio for the estimated timeframe. In 2019-20, exports grew to US$20.5 billion. Many have sought to address this challenge by creating digital teams located in Silicon Valley, with limited success. Toll Free: 888-991-1774, Pharma Resource Group Canada Inc. Nine next generation biotherapeutics (NGB) have been launched already. The promise of cell and gene therapies is being delivered to patients; rare diseases, previously believed to be incurable, are on the precipice of real cures. This model can require a dedicated team to assess, deploy, and evolve a portfolio of partnerships. There are fewer large project schemes coming through the pipeline. View in article, Mark Steedman et al., Ten years on: Measuring the return from pharmaceutical innovation 2019, Deloitte, 2020. With the upcoming election and pressure on state and federal budgets, the issue could well rise in prominence later this year. 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. While many biopharma companies are experimenting with digital, most have not yet made consistent, sustained, and bold moves to take advantage of new capabilities. Generally, the rate is set once the difference between the brand-name drug’s retail price and the generic – or “reference” product – is calculated. Additionally, here’s what our analysis found: The data comes from two different sources. 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. Pharmaceutical trends and changes in financing will continue to drive the market in 2019. However, many brand-name patents (such as the blockbuster drug Humira) protect against biosimilar intrusions for financially competitive reasons. The FDA wants to make sound decisions based on science. 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. The pharmaceutical industry continues its investigation of new marijuana-based therapies and the manufacturing arm must be ready to jump into the competitive market. This represents an average decline of 0.83% per year. has been removed, An Article Titled Biopharma leaders prioritize R&D, technological transformation, and global market presence Alok Ranjan and Shruti Panda led the text analysis efforts and Madhushree Wagh interpreted the findings. Social login not available on Microsoft Edge browser at this time. When asked about the top strategic priorities for the next five years, 63% of respondents rated R&D compared to only 43% of respondents who consider R&D as a current top priority (figure 4). A transformational change in R&D productivity is required to reverse this trend. These are challenging times for pharma companies as economic, supply chain, and other forms of uncertainties abound. DTTL and each of its member firms are legally separate and independent entities. Please see www.deloitte.com/about to learn more about our global network of member firms. Artificial intelligence (AI) and machine-learning approaches are raising expectations that therapy discovery and development may not only be more innovative, but also more time- and cost-effective. View in article. When a patent expires on a costly brand-name drug, other companies can copy said drug and sell it for a significantly reduced rate as a generic. Global market presence continues to be a top focus area for companies, with close to 60% of respondents rating it as a high priority. Survey responses indicate that the focus of digital investments for biopharma companies will remain on gaining insights into the execution of business strategies—inclusive of understanding and adapting to changes in customer behavior (28%), improving the efficiency of the R&D process (25%), and fast-tracking products to market (15%) (figure 3). European Pharmaceutical Industry: Recent Trends and Statistics May 26, 2019 April 12, 2019 by iHealthcareAnalyst, Inc. Pharma leaders should identify areas/customers where their current model is underperforming or failing and create innovation hubs to define the next evolution of the broader model. In 2018, the pharmaceutical industry spent 3.79 billion U.S. Share of U.S. adults paying attention to commercials in 2019; Share of U.S. adults paying attention to commercials in 2019… January 14, 2020 ... and by 2019 it remains the world’s most valuable, having grown by 140% in list price value over the decade. He is currently on faculty at the Haas School of Business, where he teaches health care finance and commercialization of biotech to MBA students. Economic uncertainty is growing, data science and artificial intelligence (AI) are primed for breakouts, costs are rising, and resources are limited. View in article, Mike DeLone, “Covid-19 pandemic could forever change biopharma,” blog, Deloitte, April 7, 2020. Call us toll-free at (888) 991-1774 or click here to visit our contact page. In 2017, the US Food and Drug Administration (FDA) approved the first drug (Keytruda) based on a genetic mutation rather than tumor type, closely followed by Vitrakvi. Pricing Drexel Hill, PA 19026 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. 7 Biotech Trends to Look Out for in 2019. Bristol-Myers Squibb’s $74-billion acquisition of Celgene. Email a customized link that shows your highlighted text. Currently, the FDA has approved 13 biosimilar products, while the European Medicines Agency has approved around 50. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. View in article, Deloitte, Deal breaker: Cyber risk in life sciences M&A, 2018. 1. Reaching out to users through online medicine delivery portals for over the counter drugs is the future for us.”, “Major issues could be getting funding for R&D, chances of success during regulatory approvals, and ability to keep up with innovation.”, “There is lack of sufficient money to invest in R&D, affording more operational facilities and their maintenance, and reduced supply of raw materials and resources due to the pandemic.”. We need to grow our reachability to a larger extent.”, “Need to adapt to market changes with respect to customer needs.”, “Our major concerns would include security issues because of intervention of technologies like IoT, managing the epidemic going on right now and finding a cure, and working on customized treatments based on previous data available.”, “Our top strategic priority would be to start more and more R&D initiatives globally so we have a good hold in each market for research.”, “Overall productivity by digital partnering and advancements in technology is key. The direct effects of the pandemic include suspended trials for drugs other than those for COVID-19, delayed product launches, inability of the sales force to carry out in-person visits, supply chain disruption, and overall delays in drug commercialization. Over 233 treatments are currently under consideration, and 161 vaccines are in development as of June 2020.2 While the pandemic has created opportunities for the biopharma industry to demonstrate the industry’s value, it also has led to potential short- and long-term challenges.3. Go straight to smart. Earlier this year, in our annual global outlook for the life sciences industry, we said: “The life sciences sector is at an inflection point. Certain services may not be available to attest clients under the rules and regulations of public accounting. Pharma Resource Group Inc. 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. Leaders can incentivize the organization to take informed risks, learn quickly from failures, and rapidly scale successes. 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. Pharma companies’ focus on the consumer may reflect gains in information symmetry between manufacturers and plans. 1 Yonge Street, Suite 1801 The survey was conducted in March and April of 2020. At Deloitte, her research focuses on perspectives that allow clients to anticipate, prepare for, and respond to what’s coming next. The words “China” and “rare” shrunk from their relatively prominent position in Q4 2019. The 2019 pharmaceutical trends build off an exciting 2018 in pharma with new developments in artificial intelligence, R&D, personalized medicine, drug pricing, and more. Pharma Resource Group is a comprehensive provider of Biotech, Pharmaceutical, Nutraceutical, and OTC consulting and solutions. This paper looks ahead to a 2030 scenario to examine the trends revolutionizing the sector; trends that we expect to have dramatic impacts. Other challenges include the global economic volatility, and uncertainty regarding trade and supply chain regulation and sourcing going forward. R&D for the pharmaceutical industry is moving towards a more value-based, less is more model. One way that companies are addressing this strategic priority is through explicit patient-centric strategies. The UK pharmaceutical industry plays host to a wide variety of industry events, spread over each calendar year. 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. Get the Deloitte Insights app. When asked about the top issues that will have the greatest impact on their company in the next year, pharma company leaders ranked the following challenges as their biggest concerns: Changes in consumer attitudes and behavior: Consumers are changing their attitudes and behaviors in numerous ways—from increased use of technology and willingness to share data, to their interest in using tools to make decisions about prescriptions and care.5 Survey responses aligned with Deloitte’s vision of the future of health centered on the consumer—80% of respondents chose changes in consumer attitudes and behavior as an issue that will have the greatest impact on their company (figure 1).