Economic uncertainty is growing, data science and artificial intelligence (AI) are primed for breakouts, costs are rising, and resources are limited. This represents an average decline of 0.83% per year. Technologies such as sensors, monitors, at-home diagnostics, and digital therapeutics create massive amounts of data that can be used for improving the clinical trial process and therapeutics, as well as for labeling and targeting products to patient populations who can benefit from them the most. She holds 11 years of experience in consulting, strategy, and business research in the life sciences and health care industries. have experienced a growth surge in pharma sales. 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). Despite concerns about a trade war between the US and China, it is not a surprise that China is still viewed as a huge market opportunity for the pharmaceutical industry. In 2018-19, India’s pharmaceuticals exports were worth US$19.3 billion, showing a growth of 10.72 percent year on year. Project Team: Sarah Thomas provided oversight to the project, helped to interpret the survey findings, and edit the paper. 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. This may include immunotherapies, gene therapies, and other innovative treatments for a slew of intractable diseases. Seven Trends of the Pharmaceutical Industry in 2019 (1) References: Congressional investigation targets Pfizer, Novartis and J&J, among others. Despite opposition from many pharmaceutical companies, biosimilars are beginning to emerge as a powerful future entity in the world of biologics. View in article, Mike DeLone, “Covid-19 pandemic could forever change biopharma,” blog, Deloitte, April 7, 2020. From a huge splash of artificial intelligence to automated machine systems, from interactive responsive UI to voice assistants, from data accuracy to high quality management systems, from eDetailing to e-services – and that isn’t the whole list of what has been achieved in recent years. View in article, Milken Institute, “COVID-19 treatment and vaccine tracker,” July 27, 2020. Others who have previously entered the market through joint ventures with Chinese companies and research institutes are now ready to ramp up their growth in China through drug licensing and acquisitions. The FDA wants to make sound decisions based on science. It can enable leaders to cultivate a playbook of informed bets they can place in response to ongoing market evolution, driving down the potential execution risk to the core business while enabling the margins to find new opportunities to perform. Germany introduced this pricing system in 1989 and it quickly spread to other marketplaces around the world. To change the narrative, they may need to commit to a cultural shift that incentivizes deliberate risk-taking rather than maintaining the status quo. The public debate about drug prices in the United States has subsided while the focus has shifted to the pandemic and the development of vaccines and therapies, along with their associated costs. In our previous research, global executives, business leaders, and analysts of biopharma companies said they were somewhere along the half-way mark in terms of achieving digital maturity and adoption of flexible leadership and learning models.12. 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. 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. Despite this, a large number of companies have new investment at an early concept stage all the way through to approaching procurement (full details available to subscribers to our project database). Having already proven how AI can be leveraged to make data-driven decisions faster and ramp up R&D, drug developers are now discovering a limitless range of novel and beneficial uses AI can have in an incalculable number of new pharma contexts. Therefore, Biosimilars may have the same clinical effect as a brand-name drug, but differ slightly in chemical composition. Bushra Naaz is a manager with the Deloitte Center for Health Solutions. 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. 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. RELATED: "Hot" Research Areas in Drug Discovery - 2019 . Call us toll-free at (888) 991-1774 or click here to visit our contact page. 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. This study would not have been possible without our survey participants. Mergers & Acquisitions 2018 was a significant year for pharma deals with the biggest M&A deal of 2018 the $64 billion Takeda take-over of Shire (which closed on the 7th of January 2019). Discover Deloitte and learn more about our people and culture. 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. The report also covers vital aspect like the market concentration ratio for the estimated timeframe. Devices, apps, and other services have the potential to engage consumers and support them in becoming more active in owning their own health care information and be a part of their care plan. 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. 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. While COVID-19 has forced biopharma companies to focus on immediate priorities, findings from a new survey indicate strategizing for tomorrow may be key to thrive in the future. Biosimilars eliminate a large percentage of clinical trials, as drug processors already know the toxicity profile and biological activity of the drug. 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. R&D for the pharmaceutical industry is moving towards a more value-based, less is more model. 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. Companies could be well served to take advantage of this momentum to incorporate digital technologies into the patient experience, either in clinical trials or via digital medicines and therapeutics. The text analysis used relevance analysis of keyword/ontology and natural language processing. Only 8% of them said they fit this description, while 55% believe they are close to getting there. 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. He works with corporate leadership to identify market opportunities, build sustainable capabilities, and transform business and organizational models for growth. Data-driven approaches have the potential to create value across manufacturing, the supply chain, and the entire health care ecosystem.”1. We provide our clients with strategic and tactical solutions that are scientifically based and built upon three distinct characteristics: Expertise, Knowledge and Execution. Greg Reh, 2020 Global life sciences outlook, Deloitte Insights, January 10, 2020. Comprehensive audit, advisory, consulting, and tax capabilities can deliver value at every step, from insight to strategy to action. In terms of their preparedness for these, the largest gap appeared in the area of customized treatments (only 13% felt they are very prepared). What Does a Pharmaceutical Consultant Do. We also asked companies to tell us about their top strategic priorities—although these aligned with the top issues affecting the industry, there were a few differences in emphasis; these were more about the work of the company than broader concepts such as consumerism. View in article, David Betts and Leslie Korenda, A consumer-centered future of health, Deloitte Insights, 2019. 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). Pharma companies’ focus on the consumer may reflect gains in information symmetry between manufacturers and plans. already exists in Saved items. In the past, pharma companies knew the most about their products. While this was true even before COVID-19, the pandemic and the ensuing economic downturn have brought about a sea change in the way organizations look at the road ahead. Certain services may not be available to attest clients under the rules and regulations of public accounting. Innovation starts with insight and seeing challenges in a new way. The emerging markets have increased spending power and are launching more and more new pharmaceutical products globally. There are fewer large project schemes coming through the pipeline. Alok Ranjan and Shruti Panda led the text analysis efforts and Madhushree Wagh interpreted the findings. PRG is a full-service pharmaceutical resource and services provider. Deloitte’s US Life Sciences and Health Care practice helps clients transform uncertainty into possibility and rapid change into lasting progress. 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 objective was to understand which areas, according to them, will have the biggest impact in the next 10 years. In terms of pharmaceutical drugs, pricing remains a … Published: Dec 26, 2018 By Mark Terry. As 2019 comes to a close, what were the top news stories shaping the pharmaceutical industry globally? View in article, Mark Steedman et al., Ten years on: Measuring the return from pharmaceutical innovation 2019, Deloitte, 2020. 1005 Pontiac Road, Unit 364 The F… Additionally, here’s what our analysis found: The data comes from two different sources. Leaders can incentivize the organization to take informed risks, learn quickly from failures, and rapidly scale successes. 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). 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… We also analyzed investor call transcripts from 38 of the largest (by revenue) biopharma companies for Q4 2019 and Q1 2020. Taking action against systemic bias, racism, and unequal treatment, Key opportunities, trends, and challenges, Go straight to smart with daily updates on your mobile device, See what's happening this week and the impact on your business. A transformational change in R&D productivity is required to reverse this trend. 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. The pharma world is just one sector that is expected to reap the benefits of the AI outburst. Toll Free: 888-991-1774, Pharma Resource Group Canada Inc. Below is a continuation of this review with several more active areas of research added to the list, and some extended commentaries on the trends outlined above -- where relevant. It is, however, an issue that will likely return. 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 Many have sought to address this challenge by creating digital teams located in Silicon Valley, with limited success. The emerging markets are influencing the global strategy for the pharmaceutical industry due to their exponential growth and high profitability. The words “China” and “rare” shrunk from their relatively prominent position in Q4 2019. Even though it seems like a lot has changed around us in the last few months, our analysis of investor call transcripts and a survey conducted during the pandemic suggest that many of these statements are still true. 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). 7 biopharma trends to watch in 2019. 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. 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. Yearly growth rate of R&D spending in pharmaceutical industry 2005-2019. Drawing new types of talent in high demand across industries, including engineers and designers, to inform digital investments has been a challenge within pharma. These are challenging times for pharma companies as economic, supply chain, and other forms of uncertainties abound. 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. Wide variety of industry events, spread over each calendar year article, Insights! Organizational models for growth at life inside Deloitte Biotech, pharmaceutical, Nutraceutical, business. Dttl ( also referred to as `` Deloitte pharmaceutical industry trends 2019 '' ) does not provide services to clients 2019... A close, what were the top news stories shaping the pharmaceutical.... 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