2015 Global Life Sciences Outlook

Adapting in an era of transformation

The report outlines some of the top issues facing the global life sciences sector, 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 2015 and beyond.

Aging populations, chronic/lifestyle diseases, emerging-market expansion, and treatment and technology advances are expected to spur life sciences sector growth in 2015. However, efforts by governments, health care providers, and health plans to reduce costs, improve outcomes, and demonstrate value is dramatically altering the health care demand and delivery landscape. It is becoming increasingly evident that the global life sciences sector is operating in an era of significant transformation.

Global life sciences sector trends in 2015:

1. Searching for innovation & growth

Companies in this sector continue to look at M&A as they search for innovation and growth opportunities and to offset the general decline in R&D productivity.

2. Acclimating to a changing regulatory & risk environment

Regulatory challenges in today’s global life sciences sector can result in government fines, product recalls, adverse media coverage, brand recognition damage and revenue/market share losses. Life sciences companies will need to demonstrate that they have active and comprehensive compliance programs across their business.

3. Preserving & building stakeholder value

Global life sciences companies deal with pricing pressures, generics competition, margin erosion, supply chain issues, and regulatory constraints, all of which can limit their ability to grow revenues. Fortunately, improving R&D productivity, recent increases in NME approvals, and expanding product pipelines suggest that fundamentals are aligning to increase shareholder value.

4. Preparing for the “next wave”

Life sciences companies are adapting their business models to take advantage of the following ‘next wave’ of opportunities: transition to a value-based market; new stakeholders & new conversations; personalized medicine; technology-enabled health care; the “next” emerging markets; and talent acquisition & development.

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