1. The global life sciences sector is exhibiting resilience
and reinvention as it employs new R&D and business models to
cost-effectively deliver innovation, value and improved patient outcomes. However it is facing reimbursement pressures
from escalating costs and overwhelmed health systems across the world.
2. The Americas are
the largest pharma market ($417.6 billion in 2012), followed by Europe ($224.3
billion), Asia/Africa/Australia ($168.1 billion). The biotechnology sector represented $232.5
billion in 2012.
3. The drivers for
growth are an aging population, a rising incidence in chronic diseases (e.g. cancer,
heart disease, diabetes and hypertension), technological advancements and
health care reforms (e.g. increases in insurance coverage).
4. Emerging markets
continue to be drivers of growth. India, China, Indonesia, Mexico and Russia
are predicted to have growing markets driven by population growth and
government initiatives.
5. Life science
companies are finding that cost containment is an important factor in both
developed and developing countries, with national health care systems making
greater use of generics.
6. R&D is
increasingly multi-disciplinary with more collaboration and risk-sharing. R&D is more patient-centric and driven by
rigorous financial assessment.
7. Life science
companies need to cope with the increased cost of R&D. The cost of
developing a drug has increased 18% from 2010 to 2013, to $1,290 million.
However over the same period the forecasted peak sales have dropped over 40% to
$466 million. Total forecast sales have
dropped to $4.6 billion.
8. Complying with regulatory
changes continues to be a critical issue, particularly in emerging markets.
9. The US health care
landscape is being changed by ACA and other policies and life science companies
are employing new business models in response.
In particular showing ‘comparative effectiveness’ will become much more
important.
10. Continued policies in Western Europe to reduce budget
deficits are expected to slow down annual growth in health care spending to
only 2.3%. However Asia’s annual growth
in health care spending is expected to be 7.6% in the next few years.
You may also wish to see related articles 10
Points from Burrill’s Biotech Predictions for 2014 and 10
Points About the State of the Pharma/Biotech Sectors.
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