The Life Science industry in general and in particular the Pharmaceutical industry have long successful strategy of placing big bets on a few molecules. For many years and decades they promoted them heavily and turned them into blockbusters. However, the R&D productivity has now plummeted and the environment’s changing. We believe that there are seven major trends are reshaping the marketplace:
- Increase of Chronic disease: As a result already stretched healthcare budgets are even greater pressure going forward.
- Prescription Mandate: Healthcare policy-makers and payers are increasingly mandating what doctors can prescribe.
- Outcomes-based pricing: A growing number of healthcare payers are measuring the pharmacoeconomic performance of different medicines. A widespread use of electronic medical records will give them the data they need to insist on outcomes-based pricing.
- Blurring boundaries of healthcare: Boundaries between different forms of healthcare are blurring, as clinical advances render previously fatal diseases chronic and the self-medication sector expands
- Growth in emerging markets: Demand for medicines is growing more rapidly in the emerging economies than the industrialized economies
- Prevention focus: Governments are beginning to focus on prevention rather than treatment, although they have not yet invested very much in pre-emptive measures; and
- Regulatory Pressure: Regulators are becoming more cautious about approving truly innovative medicines.
These trends will amplify the challenges the industry already faces, but they’ll also provide major opportunities for life science companies and their vendors alike. So what must the industry do to capitalise on them? We think that the life science industry will have to improve its understanding of disease, reduce its R&D costs significantly and spread its bets to improve its productivity. It’ll also have to tap the potential of the emerging economies and switch from selling medicines to managing outcomes. However, few, if any, companies will be able to perform these activities alone.
How can Salto Partners help?
- Development of effective market message by positioning new technologies, processes and services vis a vis the demands of a fast changing trillion dollar industry
- Effective market penetration strategies
- Streamlining complex sales and delivery processes
- Interim Managment of operations or complex projects
- Fundraising and Financing Options