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2013 Global life sciences outlook
Optimism tempered by reality in a 'new normal'
A new report from the Deloitte Touche Tohmatsu Limited's life sciences and health care (LSHC) industry group, examines the current state of the global life sciences industry, describes the top issues facing stakeholders, provides a snapshot of activity in a number of geographic markets, and suggests considerations for companies as they seek to grow revenue and market share in 2013 and beyond.
Following years of growth and favorable market trends, the global life sciences industry now finds itself facing a challenging "new normal."
A changing health care landscape, expiring patents and generic competition, pricing pressures, heightened regulatory scrutiny, expansion into emerging markets, increasing alliances and acquisitions, and a persistent economic slowdown are prompting global life sciences companies to adopt new business models designed to counter slowing sales growth and declining profitability, deliver better patient outcomes at lower cost, and position them for success in 2013 and beyond.
To grow in this challenging climate, the global life sciences industry is transitioning away from a primary-care, small-molecule-driven sales model towards targeting specialist secondary care indications through the use of high-value biologic therapies in the developed markets (Europe and the U.S.), while also taking a global perspective by marketing branded and off-patent medicines in the fast-growing emerging markets. Cost savings facilitated by mergers and acquisitions are also set to bolster profits.
- Worldwide trends that have fueled the industry's growth and remain favorable in the long term
- Challenges and opportunities emanating from the major issues that global life sciences companies face in 2013, grouped into three primary focus areas: business portfolio evolution, regulatory landscape, and market and treatment changes
- General industry outlook for 2013
- Stakeholder considerations around R&D future models, brand strategy/pricing, M&A and collaborations, operational efficiency, new commercial models, health analytics, and regulatory compliance
- Market updates from the Americas (Brazil, Mexico, and the United States); EMEA (GCC States, Germany, Russia, Turkey, and the United Kingdom); and Asia (China, India, and Japan)
While the industry's medium-term outlook is boosted by increased sales volume and longer exclusivity for biologics, pressure to deliver better outcomes at lower prices will not ease, as macroeconomic conditions are unlikely to improve drastically, especially in the developed countries. Additionally, generic competition will continue to eat into branded sales. It is imperative that life sciences companies gain a clear understanding of the changing ecosystem and shifting influence patterns that affect product utilization and adoption to survive and thrive in the "new normal."