The future of the life sciences industries: transformation amid rising risk | Whitepaper
Charles Darwin once said, “It is not necessarily the strongest that survive or the most intelligent but the one most responsive to change.” The same can be said of businesses confronted with new market realities—and the life sciences industry is no different. There are numerous factors necessitating a new way of doing things. The traditional sales base for pharmaceutical companies is rapidly shrinking due to loss of patent protection and competition from generics. The costs of innovation and R&D have skyrocketed. Governments and insurers are wavering over the reimbursement of new products. Reputational risk, an increased emphasis on transparency from regulators, and the impact of non-governmental organizations are also presenting considerable pressures. Transformation is fast becoming an imperative—especially
given today’s volatile economic outlook.
But are life sciences companies prepared to transform themselves—and if so, how?
In seeking to answer these questions, the Deloitte Touche Tohmatsu (DTT) Life Sciences and Health Care (LSHC) Industry Group, in collaboration with the Economist Intelligence Unit (EIU), conducted a research program in which 360 senior life sciences industry executives were surveyed and leaders of the business and regulatory communities, and academia were interviewed. The resultant white paper, The future of the life sciences industries: Transformation amid rising risk, reveals a potential sea change in the life sciences business model, with many companies looking to move from a high-risk, high-margin business to one with managed risks and more conservative margins. This shift will likely involve transformation throughout an entire company—from its sales and marketing approaches, to its cultivation of talent, to its relationship with regulators.
Yet action from within companies may not be enough. This report also seeks solutions from a wide range of sources, pointing to greater collaboration among industry stakeholders as well as gleaning insights from outside the life sciences industry. Because you can’t meet the challenges of tomorrow with yesterday’s
tools—and expect to survive.
DTT Global Life Sciences and Health Care Industry Group Leader
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