Published Date: 2019-06-07 | Views: 65 | Life Science
With strategic transformation at its core, the global life sciences industry is expected to become more customer-focused, technologically and digitally advanced, and efficient in the future. The dynamics of life science markets are anticipated to see changes due to the implementation of uncertain trade policies, increasing significance of cell and gene therapies, improving access to drugs, and continuing pricing pressure. Work transformation, data mobilization, high focus on creating value for patients, and development of relationship-driven partnerships are some of the key trends of the global life sciences industry.
There could be room for new discoveries in the global life sciences industry as research and development of immunotherapy and precision medicines increases. Adoption of new approaches and genomic research are foreseen to promote better treatment options, improvement in diagnosis, and deeper understanding of diseases.
Players Bank on FDA Approvals and New Products to Attract Growth
Bristol-Myers Squibb, a US pharmaceutical company, is one of the giant players of the global life sciences industry. The company saw a good first quarter 2019 with total revenues increasing 14% from the year-ago quarter to $5.9 Bn. It reported strong operating performance and robust demand for Eliquis and Opdivo as the highlights of its first quarter report.
American pharma company, Eli Lilly and Company is another leading player of the industry. In June 2019, the company announced the approval of its product Emgality by the FDA. The approval made the injection the only calcitonin gene-related peptide antibody and the first medication to treat episodic cluster headache and migraine in adults, according to the company’s press release. AbbVie, a US publicly traded biopharmaceutical company, announced the FDA approval of its VENCLEXTA medication as a chemotherapy-free combination regimen in May 2019. The regimen is targeted for previously untreated patients with chronic lymphocytic leukemia.
Roche, a Swiss multinational healthcare company, launched NAVIFY Tumor Board in May 2019. The first collaboration product birthed out of the company’s partnership with GE Healthcare enables more personalized treatment decisions in cancer care with the help of its medical imaging capabilities. Pfizer, based in the US, is one of the largest pharmaceutical companies in the world. The company opened a new biologics clinical manufacturing facility in the US in May 2019. In the same month, it acquired Therachon Holding AG, a Swiss clinical stage biotechnology company.
Pharma and Life Sciences Industry to Witness High Number of Acquisitions
As per the PwC Global Pharma and Life Sciences Deals Insights Q1 2019 report, Bristol-Myers Squibb Company’s acquisition of Celgene Corporation was finalized at the highest deal value of $99,554 Mn in the first quarter of 2019. Danaher Corporation acquired General Electric Company’s biopharma business for a $21,400 Mn in February 2019. Eli Lilly and Company’s acquisition of Loxo Oncology for an $8,013 Mn was the third largest of the global pharma and life sciences industry in the first quarter. The deal value of the acquisition of Spark Therapeutics by Roche Holding AG was $4,851 Mn. In March 2019, Thermo Fisher Scientific acquired Brammer Bio for a $1,700 Mn.
Need to Control Healthcare Expenses to Support Global Healthcare IT Market
Life sciences is a broad industry that includes key sectors such as healthcare, healthcare IT, diagnostics and biotechnology, medical devices and supplies, and pharmaceuticals. According market analysts, the global pharmaceuticals market is foreseen to grow with increasing incidence of chronic diseases, need for effective treatments for new diseases, and rise in research and development spending. There could be growing competition in the global pharmaceuticals market due to continuous innovation and launch of new products. The global biotech market is foretold to show growth with increasing cases of cancer and diabetes.
Rise in the prevalence of chronic disorders and growth of the geriatric population are among key factors expected to push the demand for medical devices and supplies. Increasing number of surgeries is also anticipated to fuel the demand in the global medical devices and supplies market. Healthcare IT is another high-growth market predicted to gain growth from the rising need to reduce healthcare costs, advantage of high ROI, increasing use of big data in healthcare, and implementation of strict government policies and regulations related to healthcare.
US Market to Show Robust Deal Value in Pharma and Life Sciences Industry
According to the PwC Global Pharma and Life Sciences Deals Insights Q1 2019 report, there was strong deal activity in the global pharma and life sciences industry during the first quarter of 2019. Total deal value in the first quarter soared 335% compared to the previous quarter. It reached more than $147 Bn. However, there was a 21% decrease in deal volume in comparison to the earlier quarter. The industry recorded a deal volume of 52 by the numbers.
Regionally, the US exhibited the highest pharma and life sciences deal value in the first quarter of 2019. With a $139.9 Bn deal value, it accounted for a 95% of the total deal value, followed by Rest of the World with a deal value of $4.7 Bn and reflecting 3% of the total deal value. Western Europe and Asia Pacific each secured a 1% of the total deal value with $1.5 Bn and $1.3 Bn respectively.
Key 2019 Trends of Global Life Sciences Industry
Digital Transformation: Life science companies, including forward-thinking pharmas, are foretold to look for new technologies that could help with the much-needed transformation in their business digitally. These companies have started to think beyond the pilots and pipelines strategy.
● With sensors changing the way of monitoring and treating patients and also diagnosis, medical-grade data and connectivity have become a priority. In this regard, internet of medical things or IoMT is expected to show a rising trend in the global life sciences industry
● Blockchain could be used for error-free, automated, easy, and secure sharing and aggregating of medical data
● Generally embedded in hardware, software-as-a-medical-device comes with one or more medical functions. Algorithms used in the software could be more efficient and effective than some of the diagnoses of clinicians
Deals and Innovation: Signing merger, acquisition, and partnership deals is not only considered as a way of expanding market presence or extending product portfolio but also driving innovation. Sometimes, the ROI on research and development is not as expected. However, with the signing of external deals, life science companies can continue developing next-generation treatments.
● Life science companies, especially pharmas, are predicted to show high interest in strategic deals that complement their core business and operation
● Deals could become more complex with innovative structuring coming into play
● The irrefutable threat of new entrants could be seen as an opportunity to focus more on innovation. At the same time, it may compel companies to increase their deal-making activity
Outsourcing of Expertise: Market observers expect less of conventional transactional engagements to take place in the global life sciences industry when it comes to outsourcing of expertise. Companies are prophesied to focus more on relationship-based, strategic outsourcing models in the coming years.
● Expertise including cloud computing, AI, and cognitive automation could be largely outsourced by life science companies
● Outsourcing could be one of the strategies adopted to maintain compliant operations while keeping close relationships with vendors
● Strategically partnering with pharma companies for the long term could help to improve time-to-market, reduce capacity gap, and streamline supply chain