Despite opposition from many pharmaceutical companies, biosimilars are beginning to emerge as a powerful future entity in the world of biologics. Top Trends in pharma logistics for 2019 ... Raja Sharif, CEO of FarmaTrust, predicted that in 2019 “there will be significant structural changes in the pharmaceutical industry, not only with tech companies, such as Amazon, making further inroads into the sector but also more consolidations”. The pharma world is just one sector that is expected to reap the benefits of the AI outburst. Pharma outlook 2019: positive factors. During 2019, regulators, pharma, physicians and software engineers will continue to adjust to the new realities of precision medicine. The second is a text analysis of investor statements from the largest pharma companies in the last quarter of 2019 and the first quarter of 2020. have experienced a growth surge in pharma sales. Biopharmaceutical leaders are under greater pressure than ever before, with the need to accelerate R&D innovation, adapt to a rapidly evolving health care ecosystem, and deliver on the expectations of society and their investors. Canada Pharmaceutical Market - Growth, Trends, And Forecasts (2020 – 2025) ... As of 2019, overall healthcare spending in Canada is estimated to be $264 billion, or $7,068 per capita. 7 biopharma trends to watch in 2019. Report Description: Biopharmaceutical Logistics is the logistics of Biopharmaceutical, medical and surgical supplies, and other products needed to support doctors, nurses, and other health and dental care providers. The public debate about drug prices in the United States has subsided while the focus has shifted to the pandemic and the development of vaccines and therapies, along with their associated costs. As we wrote in an article on patient-centricity earlier this year, “companies should not only embrace [a patient-centric] approach, but prepare to participate in an emerging ecosystem where philanthropies dedicated to particular diseases, patient advocacy groups, health plans, health systems and physicians, regulators, competitors, and technology and wellness companies are all better connected so that the patient is at the center.”6, —EVP/VP business/corporate development, biopharma company, Cyber and advances in technology: The next most common issues cited were cybersecurity threats (70%) and advances in technology (68%). View in article, Ryan Myers, Margaret Anderson, and Casey Korba, Striving to become more patient-centric in life sciences, Deloitte Insights, January 30, 2020. The current COVID-19 crisis will bring more challenges into the picture and is likely to impact our goals in many areas.”, “We are not prepared for meeting rising customer expectations. Pharma Resource Group is a comprehensive provider of Biotech, Pharmaceutical, Nutraceutical, and OTC consulting and solutions. View in article, Edwin Elmhirst and Lisa Urquhart, “Big pharma sports smallest late-stage pipeline for a decade,” Evaluate Vantage, June 17, 2020. Precision medicine involves treating a patient according to his or her disease-causing genetic mutations instead of a disease label such as “melanoma” or “pancreatic cancer.” It’s been a massive paradigm shift. Many have sought to address this challenge by creating digital teams located in Silicon Valley, with limited success. Bushra Naaz is a manager with the Deloitte Center for Health Solutions. Mergers & Acquisitions 2018 was a significant year for pharma deals with the biggest M&A deal of 2018 the $64 billion Takeda take-over of Shire (which closed on the 7th of January 2019). Biosimilars have the potential to significantly reduce the financial burden that many brand-name drugs place on insurance entities and consumers. Biopharma companies have been racing to discover effective treatments and vaccines for COVID-19. Discover Deloitte and learn more about our people and culture. When a patent expires on a costly brand-name drug, other companies can copy said drug and sell it for a significantly reduced rate as a generic. Thedigital revolution and the availability of newer and improved biotechnological technologies is going to change profoundly the way medicine is practiced. These results are consistent with the survey findings—consumer behavior is a top issue. These innovation hubs can test new roles, technologies, policies, and strategies in an environment where failure is likely no worse than the status quo. The UK pharmaceutical industry plays host to a wide variety of industry events, spread over each calendar year. Drexel Hill, PA 19026 The authors would also like to thank Sonal Shah, Tom Fezza, Glenn Snyder, Jeffery Ellis, Pedro Arboleda, Bill Murray, Douglas Billings, Ramani Moses, Laura DeSimio, and the many others who contributed to the success of this project. Bushra holds a postgraduate business management diploma in international business from the Symbiosis Institute of Management Studies, Pune, and a bachelor’s degree in science from Ambedkar University, Agra. View in article, Greg Reh and Mike Standing, Survey finds biopharma companies lag in digital transformation: It is time for a sea change in strategy, Deloitte Insights, October 4, 2018. The emerging markets have increased spending power and are launching more and more new pharmaceutical products globally. 1005 Pontiac Road, Unit 364 See Terms of Use for more information. 1. So, if drug A costs $1000 and drug B costs $200, and the patient’s coinsurance rate is 10% of any cost larger than the reference price, the patient would end up paying $80 a month. Pharma Marketing Trends Expected to Evolve in 2019. While COVID-19 has forced biopharma companies to focus on immediate priorities, findings from a new survey indicate strategizing for tomorrow may be key to thrive in the future. When asked about the top strategic priorities for the next five years, 63% of respondents rated R&D compared to only 43% of respondents who consider R&D as a current top priority (figure 4). Recalls related to label issues alone may cost a pharmaceutical company $100 million or more a year. Through her research, she helps inform Deloitte’s health care and life sciences clients about emerging trends, challenges, and opportunities. (For details on the survey methodology, see sidebar, “Methodology.”) COVID-19 has presented challenges to many aspects of pharma companies, but the focus on new technologies and data and value creation remains. The Pharmaceutical Market revenue was xx.xx Million USD in 2014, grew to xx.xx Million USD in 2018, and will reach xx.xx Million USD in 2023, with a CAGR of x.x% during 2019-2023. Given such dynamics, pharmaceutical companies are always responding to rapid developments and challenges. Being deliberate about the intent of these hubs can support a more progressive culture that empowers those willing to march on to the next frontier. Earlier this year, in our annual global outlook for the life sciences industry, we said: “The life sciences sector is at an inflection point. She holds 11 years of experience in consulting, strategy, and business research in the life sciences and health care industries. View in article. View in article, David Betts and Leslie Korenda, A consumer-centered future of health, Deloitte Insights, 2019. Other challenges include the global economic volatility, and uncertainty regarding trade and supply chain regulation and sourcing going forward. Certain services may not be available to attest clients under the rules and regulations of public accounting. Ford holds an MBA and an MPH (public health) from UC Berkeley. R&D for the pharmaceutical industry is moving towards a more value-based, less is more model. EFPIA Key Data | 2019 4 65.2% 9.3% Pharmerging comprises 21 6.3% 17.7 % Pharmerging Japan Europe (Top 5) Rest of the World USA 1.5% MAIN TRENDS The research-based pharmaceutical industry can play a critical role in restoring Europe to growth and Findings from a new survey and analysis of investor calls in the first half of 2020, Change in consumer behavior prompting a change in strategic thinking, Strategic priorities include R&D, establishing presence in global markets, and transformation of functions using digital and information technologies, Digital maturity: Investments rise, but many aren’t there yet, The future of health for biopharma companies in the decade ahead, “Considering the pandemic, the world is witnessing, strategies for drug development is our focus. Over 233 treatments are currently under consideration, and 161 vaccines are in development as of June 2020.2 While the pandemic has created opportunities for the biopharma industry to demonstrate the industry’s value, it also has led to potential short- and long-term challenges.3. Despite this urgency, bets should be selective and strategic; companies should prepare for risk but not let it hold them back. Save my name, email, and website in this browser for the next time I comment. The focus of emerging markets is inclining towards health issues affecting their people. Call us toll-free at (888) 991-1774 or click here to visit our contact page. FDA continues to accelerate development of novel therapies for COVID-19, Opportunities in China’s pharmaceutical market, Medtech leaders prioritize technology and consumers, RWE focus is shifting to R&D, early investments begin to payoff. They need an organization that will thrive in today’s market while simultaneously preparing for the next market disruption.Most pharma companies have business models that are focused on certain geographies and customers. Pharmaceutical industry overview: US. PRG is a full-service pharmaceutical resource and services provider. The 2019 pharmaceutical trends build off an exciting 2018 in pharma with new developments in artificial intelligence, R&D, personalized medicine, drug pricing, and more. The promise of cell and gene therapies is being delivered to patients; rare diseases, previously believed to be incurable, are on the precipice of real cures. The objective was to understand which areas, according to them, will have the biggest impact in the next 10 years. Both the survey and the second round of investor statements were sourced during March and April 2020, at the peak of the COVID-19 pandemic. This represents an average decline of 0.83% per year. He holds more than 15 years of healthcare and life sciences experience focusing on growth and innovation and is a leader in our corporate strategy practice. The emerging markets are influencing the global strategy for the pharmaceutical industry due to their exponential growth and high profitability. Biosimilars eliminate a large percentage of clinical trials, as drug processors already know the toxicity profile and biological activity of the drug. As 2019 comes to a close, what were the top news stories shaping the pharmaceutical industry globally? While COVID-19 has fueled investments in digital R&D and customer engagement, it has also accelerated the transformation of health care delivery. In 2018-19, India’s pharmaceuticals exports were worth US$19.3 billion, showing a growth of 10.72 percent year on year. Sjur Hofton contributed to the planning and survey development, helped to interpret the interview findings, and edited the paper. already exists in Saved items. Pharmaceutical Industry Trends for 2019 Trend #1: Sales growth is slowing Given the ever more daunting market access challenges to pharmaceuticals in established or developed territories, such as the US and Europe, it is hardly surprising these markets are reaching some degree of saturation. Leaders of pharma companies are in the midst of unprecedented change. In our previous research, global executives, business leaders, and analysts of biopharma companies said they were somewhere along the half-way mark in terms of achieving digital maturity and adoption of flexible leadership and learning models.12. See something interesting? Generally, the rate is set once the difference between the brand-name drug’s retail price and the generic – or “reference” product – is calculated. January 14, 2020 ... and by 2019 it remains the world’s most valuable, having grown by 140% in list price value over the decade. View in article, Jeff Morgan et al., RWE focus is shifting to R&D, early investments begin to pay off, Deloitte Insights, June 11, 2020. Below is a continuation of this review with several more active areas of research added to the list, and some extended commentaries on the trends outlined above -- where relevant. Pharma companies face a range of policy and regulatory issues—activity that affects the pace at which drugs come to market, supply chain and safety, tax, and pricing polices limiting payment rates. View in article, Milken Institute, “COVID-19 treatment and vaccine tracker,” July 27, 2020. Our people, process, and products have helped produce decades of real-world solutions for a number of complex pharmaceutical needs. Devices, apps, and other services have the potential to engage consumers and support them in becoming more active in owning their own health care information and be a part of their care plan. Artificial intelligence (AI) and machine-learning approaches are raising expectations that therapy discovery and development may not only be more innovative, but also more time- and cost-effective. We provide our clients with strategic and tactical solutions that are scientifically based and built upon three distinct characteristics: Expertise, Knowledge and Execution. To change the narrative, they may need to commit to a cultural shift that incentivizes deliberate risk-taking rather than maintaining the status quo. info@pharmarg.com, Tel: (610) 924-9092 Generics have identical chemical compositions to brand-name drugs. The issue is also compounded by the decrease in average peak sales per asset.9, Policy and regulatory activity: More than half of respondents listed policy and regulatory activity as a top issue. PwC believes that seven major trends are reshaping the marketplace: Those that are at concept stage are taking much longer in general to progress, with many being placed on-hold. This model can require a dedicated team to assess, deploy, and evolve a portfolio of partnerships. Additionally, globally, social unrest around racism issues is increasingly calling on leaders to develop, implement, and sustain new initiatives. She is based out of the Rosslyn office in Arlington, VA. Jeff Ford, principal, Deloitte Consulting, has led numerous engagements with life sciences clients to overcome challenges related to growth and innovation. The key is to build an organization that can thrive in today’s market, while being ever ready for the next market turn. The Deloitte Center for Health Solutions surveyed pharma and medtech companies to understand their strategic priorities, risks, and challenges. Research and development in European pharmaceutical industry by country 2018. He works with corporate leadership to identify market opportunities, build sustainable capabilities, and transform business and organizational models for growth. Comprehensive audit, advisory, consulting, and tax capabilities can deliver value at every step, from insight to strategy to action. Our top priority right now would be to be more available on social platforms in order to reach our customers. In our survey, we posed several open-ended questions to our respondents, to understand their strategic priorities in their own words. A recent report found that the pandemic has decreased the number of novel late-stage assets, which already were declining in the last four years.4 The report also shows merger and acquisition activity to be slower in 2020 than other years. Even as many of these companies are focusing on therapies and vaccines for the pandemic, leaders should think strategically about their investments—in terms of therapeutic area, digital technologies, and talent—in order to thrive in the future. With the upcoming election and pressure on state and federal budgets, the issue could well rise in prominence later this year. Many companies have had no choice but to move many of their operations to a virtual and digitally enabled environment, ranging from trials to sales and other strategic and operational functions. Email a customized link that shows your highlighted text. But China is not the only source of innovation and growth; many companies are focusing on growth in the EU region and other parts of the global economy, sometimes through direct market entry, or out-licensing.13. IQVIA experts have identified ten emerging sectors to be monitored in the next five years, as they might provide a great amount of innovation. Drawing new types of talent in high demand across industries, including engineers and designers, to inform digital investments has been a challenge within pharma. Recently, President Trump proposed changes to Medicare costs that look eerily similar to external reference pricing that is employed by more socialized healthcare systems around the world. info@pharmarg.com. Evolving technologies, including blockchain, can help facilitate data interoperability, so that patient data can be more easily used for holistic and longitudinal analysis of health outcomes. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. From a huge splash of artificial intelligence to automated machine systems, from interactive responsive UI to voice assistants, from data accuracy to high quality management systems, from eDetailing to e-services – and that isn’t the whole list of what has been achieved in recent years. Social login not available on Microsoft Edge browser at this time. Simply select text and choose how to share it: Biopharma leaders prioritize R&D, technological transformation, and global market presence Only 8% of them said they fit this description, while 55% believe they are close to getting there. Taking action against systemic bias, racism, and unequal treatment, Key opportunities, trends, and challenges, Go straight to smart with daily updates on your mobile device, See what's happening this week and the impact on your business. The outlook on the pharmaceutical industry is negative, mainly due to continued pricing pressure on both branded and generic pharmaceuticals and the possibility of major debt-financed acquisitions at big pharma and biotech to address product pipelines. In 2018, the pharmaceutical industry spent 3.79 billion U.S. Share of U.S. adults paying attention to commercials in 2019; Share of U.S. adults paying attention to commercials in 2019… The Deloitte Center for Health Solutions set out to understand these organizations’ strategic priorities, and learned that maintaining and expanding R&D, technological transformation, and their global market presence are their immediate focus areas. We also analyzed investor call transcripts from 38 of the largest (by revenue) biopharma companies for Q4 2019 and Q1 2020. While many biopharma companies are experimenting with digital, most have not yet made consistent, sustained, and bold moves to take advantage of new capabilities. DTTL and each of its member firms are legally separate and independent entities. They were generous with their time and insights. However, many brand-name patents (such as the blockbuster drug Humira) protect against biosimilar intrusions for financially competitive reasons. Based on the Pharmaceutical industrial chain, this report mainly elaborates the definition, types, applications and major players of Pharmaceutical market in details. Pharma companies’ focus on the consumer may reflect gains in information symmetry between manufacturers and plans. Amid unprecedented uncertainty and change across the industry, stakeholders are looking for new ways to transform the journey of care. Here are some of the biggest 2019 pharma industry trends to look out for. While these challenges continue to disrupt the industry, the pandemic has also propelled multiple partnerships to develop a COVID-19 vaccine. 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