Sustained Growth Amidst Reshaping: Deloitte 2025 Life Sciences Outlook

Predictions

Sustained Growth Amidst Reshaping: Deloitte 2025 Life Sciences Outlook

To adapt, grow and generate value despite industry uncertainties

Published date: 24 January 2025

The global outlook 2025 - Life sciences and health care organizations continue to show a positive outlook for their industry, focusing on health equity and well-being for a wider population. Unsurprisingly, top in mind for the leaders continue to be: growth strategies while larger competitive challenges, and investing in digital transformation and technologies with having a clear patient focus.

In this whitepaper you’ll be learning about the key issues transforming the life sciences and health care ecosystem, and how leaders plan ahead for resilience strategies in the time of business volatility and technological changes in 2025.


Digital transformation drives changes

According to the report, digital transformation is the core driving force for the development of the life sciences industry in the coming years. About 60% of executives cited GenAI or digital transformation as key emerging trends they are closely monitoring. These technologies can not only boost operational efficiencies but also promote breakthrough innovations. For instance, generative AI can reduce costs in research and development, streamline back-office operations, and improve customer service experiences. Enterprises need to prioritize how to benefit from these technologies and ensure that the necessary infrastructure is in place to support large-scale deployment.


R&D and portfolio strategies could help mitigate competitive pressures

Pricing and access to drugs and medical devices are seen as the most significant issue facing the life sciences industry. 47% and 49% of the surveyed executives respectively expect that it will have a significant or moderate impact on their strategy for 2025. Additionally, 37% of respondents view competition from generic drugs and biosimilars as a top trend.

Innovation is how life sciences companies respond to such market dynamics. Deloitte's survey data indicates R&D is likely to be a major focus in 2025.Companies are exploring a variety of initiatives to enhance their market positions, including:

  • Rethinking R&D strategies
  • Ensuring acquisitions align with corporate strategies
  • Strengthening real-world and multimodal data capabilities


Develop resilient strategies to prepare for business volatility

While most industry executives are optimistic about 2025, some are preparing for unexpected challenges and business volatility. About one-third of survey respondents expressed concern about potential changes to US regulations in 2025, while 37% are apprehensive about global regulatory changes and geopolitical uncertainties. These percentages are slightly higher than in past years, while concerns related to inflation and economy uncertainty have decline.

With scenario-planning, companies can work to address known challenges and mitigate, unpredictable risks, focusing on resilience, agility, and strategic foresight. Key approaches include:

  • Fortifying supply chains
  • Optimizing operating models and reducing costs
  • Strengthening cybersecurity and sustainability


Evolving customer expectations could influence strategies

In the survey, 36% of C-suite executives indicated that improving customer experience, engagement, and trust was very important and 29% said they were prioritizing investments in a customer-engagement strategy. However, only about one-third of HCPs say a pharmaceutical company’s customer-facing resource meet their needs. By contrast, over 80% of pharma executives said they are satisfied with their current customer engagement strategy.

On the other hand, health care consumers are increasingly acting as the “CEOs” of their health, and they are turning to GenAI when making decisions about their care. They also are becoming more selective about their HCPs.

In light of this, in order to enhance customer experience, enterprises need to strengthen personalized interactions and service support, and utilize digital technology to achieve more precise customer communication.

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