Pharmaceuticals in Health Solutions
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Keep calm and carry on: How can the healthcare and life sciences industries weather the Brexit storm?
We have now had the best part of a week to absorb the momentous news that the UK has voted to leave the European Union. Much has been written about this seismic event and, following our blog in February this year, on what Brexit might mean for the healthcare and life sciences industries,i we thought we should use this week’s blog to update our views on the potential risks and opportunities for our life sciences and healthcare sectors.
Over the last 15 months some of our Monitor Deloitte colleagues have been working with the Office of Life Sciences to help the UK establish a programme of accelerated access to clinical innovation for NHS patients and a healthy environment for the Life sciences industry. This week’s blog introduces the latest results of our involvement – the publication of a ‘How to Guide’ from early idea development through to large scale adoption.
When I think back on the 16 years I spent in market research and consulting for the life sciences industry, much of my time was spent forecasting. Forecasting informs a multitude of activities and decisions, both strategic and tactical, within the industry and I was lucky enough to be immersed in many of these:
- assessing the market potential of a new product launch
- quantifying commercial opportunity within a new geography
- estimating the size of a therapy area or indication
- evaluating the impact of a new competitor on a market incumbent
- predicting the likely returns of a product at different price points
- gauging the commercial potential of an acquisition or divestment, be it an asset, a portfolio of assets or a company level
- forecasting the size of a salesforce for a new product launch, to name just a few.
April 30th is National Take Back Day in the US. Take back events encourage consumers/patients to return unused medicines that are lying around their homes to pharmacies, so that they can be disposed of properly. This reminded me of a recent experience that troubled me enormously.
In December 2015 we launched our sixth annual report on ‘Measuring the return from pharmaceutical innovation’. Our research highlights the difficulties that the largest pharmaceutical companies face in delivering sustainable returns on their late stage R&D pipelines. Indeed, while the cost to develop an asset has increased by a third since we started our analysis six years ago, forecast average peak sales has declined by half. Additionally, our measure of forecast R&D return on investment (RoI) has also shown a significant downward trend, with the average across the 12 companies declining from over ten per cent in 2010 to just over four per cent in 2015.
The Conservatives' 2015 election manifesto committed to hold a referendum by 2017 on whether or not the UK should stay in or leave the European Union. Increasing unrest among Eurosceptic politicians and a narrowing of the polls on the likely outcome of the vote has led to the suggestion that the referendum could be held as early as June or September 2016. While all industries are speculating on the potential impact of an “out” vote, the global pharmaceutical industry faces some very specific concerns. This blog considers some of the main questions that the pharmaceutical industry is contemplating as part of the in/out debate.
You may have seen the headlines this week that pharma R&D returns are at their lowest level for at least 5 years. This comes from our 6th ‘Measuring the returns from pharmaceutical R&D’ report – an annual study which I have worked on for the last three years. I thought I’d take this opportunity to reflect on the origins of this report and its contribution to the debate on pharma R&D productivity.
This week, the Centre for Health Solutions launched its report The challenge of compliance in life sciences: moving from cost to value at the Financial Times Global Pharmaceutical and Biotechnology Conference in association with Deloitte. The report, which is based on interviews conducted with senior compliance leaders in 11 major life sciences companies and Deloitte’s experience working with the industry, focuses on the compliance challenges life sciences companies face in ensuring a strategic balance between compliance risk and value. As regulators and regulations continue to increase in number and complexity, life sciences companies will need to demonstrate that they have active and comprehensive compliance programmes across all of their business and clinical operations. This week’s blog discusses the seven key insights derived from the initial phase of our research that we believe these programmes would need to address.
This week we’re delighted to feature a blog written by one of our US colleagues. In his ‘My Take’ Reynold W. (Pete) Mooney (Managing Director, Life Sciences and Health Care, Deloitte Touché Tohmatsu Limited) discusses how expanding market access is crucial to providing a sustainable solution to rising healthcare costs.
While infectious disease burden is still a pressing issue around the world, many regions are also facing an explosion of the same chronic and lifestyle diseases that are impacting the developed world. Programs like the US President's Emergency Plan for AIDS Relief (PEPFAR) have enabled great strides against diseases like HIV/AIDS, for example. But sadly, little public money goes toward chronic disease in some parts of the developing world. As a result, more than half of the world’s population makes too little to afford many of the drugs they need, and four out of five chronic disease deaths are in low- or middle-income countries.1,2 These attention-grabbing statistics highlight the vast unmet needs in terms of access and affordability that exist around the globe.
This week we’re delighted to feature a blog written by one of our US colleagues. In his ‘My Take’ Greg Reh (Principal, US and Global Life Sciences Leader, Deloitte Consulting LLP) discusses the findings from Deloitte’s 2015 survey of US Health Care Consumers and shares his insights on patient engagement:
“An empowered consumer is the new breakthrough drug.” This is how Daniel Kraft, Medicine and Neuroscience Chair at Singularity University, began his talk at last week’s Financial Times and Deloitte Digital Health Summit. And, it’s true: In a health care environment that is continually transforming, a patient-centric marketplace holds important considerations for stakeholders as they seek to adapt, innovate, and grow.