2020 US and global life sciences outlook

A US perspective on life sciences trends

In 2020, we expect to see interoperability move significant steps forward. Personalized health data combined with artificial intelligence (AI) could fundamentally change not just the patient experience, but the human experience, too. And while the drive toward interoperability could improve efficiency in the years ahead, driving value and meaning for patients and consumers could pave the way forward for life sciences firms. Our 2020 global life sciences outlook takes an in-depth look into why life sciences companies should consider creating a holistic patient experience.

We are moving closer to the promise of true precision medicine and a future of health where we learn from every radically interoperable data point in the context of every patient. When we look back 20 years from now, 2020 may very well be seen as the year life sciences firms finally moved past their 20th-century models and stepped into a new era. Radical interoperability and evolving the patient experience are just two of the trends we see for 2020, here are three more:

• Organizations from outside of health care will continue to enter this space
• Clinical trials could become more inclusive
• Behavioral science could play a bigger role

Read the full blog to hear more about coming health trends from Deloitte’s US Life Sciences Leader, Mike DeLone.

Global life sciences sector issues in 2020

Creating new value

While advances in technology appear to drive more efficiency, biopharma and medtech leaders should look to more deeply understand ways to increase value and meaning for workers, patients, and ecosystem partners. Cultivating human strengths—for probing data, curating information, and asking the right questions— can help humans work with technology to think exponentially.  

In order to be successful, leaders should look at how jobs can be redesigned around human-machine collaboration—that enhance workers’ capabilities and augment human abilities. Emerging technologies, meaningful work, and flexible work models could lure the next generation of talent that has the potential to create more value.

Opportunities and efficiencies

Medtech companies have the potential to drive efficiencies and tackle challenges by applying solutions such as IoT, machine learning, additive manufacturing, and augmented reality. A new breed of AI startups is leading the way on how new drugs are being developed.

Competition for AI talent will likely be fierce, and biopharma companies should not let traditional thinking and legacy cultures put them at a disadvantage. Emerging technologies could also positively drive change throughout each stage of the supply chain—leading to enhanced value to patients.

Building blocks for the future

The commercialization of gene and cell therapies comes at a time of wider drug price scrutiny from policymakers and the public. In 2020, drug pricing, health care expenditures, and market accessibility will likely continue to be the main concerns.

Patient-centered platforms and consumer health apps are now collecting more data, but there is confusion regarding which entity or individual owns that data. With a widespread access to valuable patient data, can organizations overcome the challenge of maintaining trust? In 2020, medtech companies will continue to face competition from consumer technology companies and new care models. Pharmaceutical firms’ environmental and social performance is also increasingly coming under scrutiny by stakeholders, including investors.

Looking ahead, sales trajectories

Between 2019 and 2024, worldwide prescription drug sales are projected to have a positive CAGR of 6.9 percent with sales expected to reach US$1.18 trillion. However, uncertainty remains regarding drug pricing in the world’s largest market, the United States. Other challenges include risk due to patent expiration, increased clinical development spend for cardiovascular disease, decline in antirheumatics, and lower investments in R&D as a proportion of sales.

Tech giants are disrupting medtech and becoming a direct competitor. Also, downstream pricing pressures, stringent regulations, and operational inefficiencies due to industry consolidation are forcing many medtech companies to implement effective cost reduction strategies to remain competitive.