The Future of the Life Sciences Industries
For the past several years, Deloitte’s Global Life Sciences and Health Care practice has worked with the Economist Intelligence Unit (EIU) on research endeavors related to the future of the life sciences industries.
Last year’s study, The Future of the Life Sciences Industries: Transformation amid rising risk, examined how and where senior executives believed that risks will continue to rise within their companies, and what actions they were taking to address the unique challenges now facing the industry.
Building on this series, we teamed with the EIU this year to explore current thinking among life sciences executives on how the global financial and economic crisis affected their business priorities and strategies.
We are pleased to present you with our findings in the report, The future of the life sciences industries: aftermath of the global recession.
The report is based on online surveys of 281 senior industry executives during September-October 2009. Of the respondents, 133 are board members or C-level executives. The report also draws on individual interviews with industry leaders.
Their responses reveal that, while the immediate financial hit of the recession has been mostly absorbed, industry forces already in play will only be intensified by this most recent downturn and may permanently reshape the look of the industry.
Some key findings of the report include:
- More than 65 percent of respondents indicated that their company has been moderately to significantly negatively affected by the recent global recession. A significant minority of 17 percent say that the recession will cause major changes to their pre-recession strategy.
- 44 percent of respondents believe that 20 to 40 percent of existing biotech companies won’t exist in five years as a result of the global recession. The equivalent figure for biotech executives surveyed was a more pessimistic 68 percent.
- Companies that can sustain their focus on innovation will be the eventual “winners.” However, nearly one-third say that their company is reducing R&D spend and 43 percent indicate that their company is focusing on products with immediate returns.
For more information, please click on the report below.