They were generous with their time and insights. 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). In the near future, this could bring a shift in the application of real-world evidence with the highest impact being in R&D, including supporting regulatory filings and augmenting clinical trials.14. See something interesting? The key is to build an organization that can thrive in today’s market, while being ever ready for the next market turn. Seven Trends of the Pharmaceutical Industry in 2019 (1) References: Congressional investigation targets Pfizer, Novartis and J&J, among others. 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. While many biopharma companies are experimenting with digital, most have not yet made consistent, sustained, and bold moves to take advantage of new capabilities. At Deloitte, her research focuses on perspectives that allow clients to anticipate, prepare for, and respond to what’s coming next. 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. Fax: (610) 924-9339 R&D for the pharmaceutical industry is moving towards a more value-based, less is more model. Less is more for research and development departments if pharmaceutical companies wish to stay competitive. This article focuses only on the results for biopharma companies; insights on the results for medtech companies can be found here. Rather than focusing on geography, shifting the mission of these individuals to disrupt the status quo from within can be a strong recruitment driver. Respondents chose R&D, expanding their global market presence and transformation of functions using digital and information technology as the top three priorities. Alex Blair is a senior manager with Deloitte Consulting. However, uncertainty remains regarding drug pricing in the world’s largest market, the United States. While these challenges continue to disrupt the industry, the pandemic has also propelled multiple partnerships to develop a COVID-19 vaccine. Drexel Hill, PA 19026 He regularly works with corporate leadership to identify new market opportunities, build new organizational models for growth, and transition between business models. During 2019, regulators, pharma, physicians and software engineers will continue to adjust to the new realities of precision medicine. This may include immunotherapies, gene therapies, and other innovative treatments for a slew of intractable diseases. 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). 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.) In terms of pharmaceutical drugs, pricing remains a … Data-driven approaches have the potential to create value across manufacturing, the supply chain, and the entire health care ecosystem.”1. Thedigital revolution and the availability of newer and improved biotechnological technologies is going to change profoundly the way medicine is practiced. Many have sought to address this challenge by creating digital teams located in Silicon Valley, with limited success. Those that are at concept stage are taking much longer in general to progress, with many being placed on-hold. Biopharmaceutical leaders are under greater pressure than ever before, with the need to accelerate R&D innovation, adapt to a rapidly evolving health care ecosystem, and deliver on the expectations of society and their investors. As an example of the shift towards value-based R&D, Novartis dropped nearly 20% of its 430 pharma development programs, with the company stating that it is searching for something more “transformative”. 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. 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. If you fancy a trip to Paris, there’s the Pharmapack event in February, or a trip to Berlin will take you to Pharma Contract Manufacturing in March, but here’s a few UK events to look out for at the start of 2019: has been removed, An Article Titled Biopharma leaders prioritize R&D, technological transformation, and global market presence 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. European Pharmaceutical Industry: Recent Trends and Statistics May 26, 2019 April 12, 2019 by iHealthcareAnalyst, Inc. DTTL (also referred to as "Deloitte Global") does not provide services to clients. 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. Despite this urgency, bets should be selective and strategic; companies should prepare for risk but not let it hold them back. Pharma Marketing Trends Expected to Evolve in 2019. Pharma Resource Group Inc. This represents an average decline of 0.83% per year. Healthcare and pharmaceutical trends 2019 Subject: 2019 is a year of transition in healthcare and pharmaceuticals. The Deloitte Center for Health Solutions surveyed pharma and medtech companies to understand their strategic priorities, risks, and challenges. Find out more at https://www2.deloitte.com/us/en/industries/life-sciences-and-health-care.html. 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. 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. 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. Pharma outlook 2019: positive factors. 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. 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). With the upcoming election and pressure on state and federal budgets, the issue could well rise in prominence later this year. View in article, Mark Steedman et al., Ten years on: Measuring the return from pharmaceutical innovation 2019, Deloitte, 2020. traditional pharmaceutical business model. Blair holds an MBA in Healthcare Management from The Wharton School, University of Pennsylvania, and a BS and MEng from Cornell University. One way that companies are addressing this strategic priority is through explicit patient-centric strategies. View in article, Deloitte, “Opportunities in China’s pharmaceutical market,” 2011. 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. Now we’re settling in to 2019 let’s take a glance at global pharma trends and what this means for the Irish Pharma sector for the year ahead. Social login not available on Microsoft Edge browser at this time. While COVID-19 has fueled investments in digital R&D and customer engagement, it has also accelerated the transformation of health care delivery. Alok Ranjan and Shruti Panda led the text analysis efforts and Madhushree Wagh interpreted the findings. 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. Nine next generation biotherapeutics (NGB) have been launched already. 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. See Terms of Use for more information. 1. In 2019-20, exports grew to US$20.5 billion. RELATED: "Hot" Research Areas in Drug Discovery - 2019 . These innovation hubs can test new roles, technologies, policies, and strategies in an environment where failure is likely no worse than the status quo. Bristol-Myers Squibb’s $74-billion acquisition of Celgene. © 2021. 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. G… Please see www.deloitte.com/about to learn more about our global network of member firms. 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 In 2018-19, India’s pharmaceuticals exports were worth US$19.3 billion, showing a growth of 10.72 percent year on year. The pharmaceutical industry continues its investigation of new marijuana-based therapies and the manufacturing arm must be ready to jump into the competitive market. Sjur Hofton contributed to the planning and survey development, helped to interpret the interview findings, and edited the paper. 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). As Stephen M. Hahn, FDA commissioner, stated, “We want to help patients by expediting promising treatments and are committed to maximizing our regulatory flexibility and proactively bringing the best innovators together to ensure we are getting the right treatments to the right patients at the right time.”10. 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. Email a customized link that shows your highlighted text. 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). The authors would also like to thank Sonal Shah, Tom Fezza, Glenn Snyder, Jeffery Ellis, Pedro Arboleda, Bill Murray, Douglas Billings, Ramani Moses, Laura DeSimio, and the many others who contributed to the success of this project. Next generation biotherapeutics ( NGB ) have been possible without our survey participants the FDA wants make... Transforming business functions pharma and medtech companies can think and act more like their nimble small pharma.! Growth and high profitability related: `` Hot '' research Areas in drug Discovery - 2019 many pharmaceutical are... 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