Global trends on the pharmaceutical and biotechnology market
Report: Global life sciences outlook 2020
March 2020 r.
Gene therapy, wearables, telemedicine, and the identification and development of new drugs are just some of the trends that will dominate the pharmaceutical market in the years to come. The pharmaceutical and biotechnology sectors are at a decisive moment. To prepare for the future, and remain relevant in the constantly changing business environment, biopharma and medtech companies will have to search for new ways to create value.
Global revenues from prescription medicine are dynamically rising, at the average of 6.9 percent year on year, and will soon reach up to USD 1.18 tn. Such growth is possible thanks to a faster drug approval process, increased sales in oncological treatment, and greater opportunities for obtaining an additional USD 109 bn from sales of orphan drugs, which are used to treat rare medical conditions.
The development of the industry is also heavily impacted by the need to find drugs to treat COVID-19, the disease caused by the SARS-CoV-2 coronavirus. Institutions dealing with medical technologies will also play an important role.
It is furthermore expected that by 2022, with the average annual growth of 2.9 percent, the biotech app market will be valued at USD 8.9 bn, compared to 7.7 bn in 2017. The adoption of advanced technologies, such as AI or machine learning will allow comprehensive collection of data about patients – from diagnosis, through treatment, to prevention and staying healthy.
- Real-time data will likely bring the most profits to those institutions which successfully process data to provide tailored solutions and satisfy the consumers’ needs.
- The growing use of new technologies (telemedicine and artificial intelligence) may make medical examinations more accessible.
- Large pharmaceutical companies will still have to acquire organisations dealing with gene therapy, whereas smaller enterprises may gain market shares by developing and marketing products on their own.
- Large tech firms become new players in the life sciences market, with their computing power, production analyses, and advanced supply chain control allowing them to ensure efficient action and better decision-making.
- Cloud computing can allow leaders to cooperate with other biotech firms, research labs and academic institutions across the world.
- A more targeted involvement of patients and the use of behavioural sciences can lead to better treatment results.
- Both pharma, biotech, and medtech organisations can benefit from digital supply networks (DSNs) that provide better visibility for products, traceability, and stock control in the supply chain.
- With intellectual property (IP) adequately protected, medtech organisations should open themselves to collaborating with technological enterprises and to developing more consumer-friendly devices.
- Medtech companies from developing countries are steadily gaining their share of foreign markets, as well as strengthening their domestic presence.
- Despite the challenges, the life sciences industry is expected to continue its investments in research and development with a view to increasing the rate at which revenues are generated from the biotechnology sector.
- Medtech firms can no longer rely on old business models to stimulate growth. They should adapt and review their strategies.