Emerging technologies are creating a transformative opportunity for life sciences,
and scientific achievements are on a record pace.
Global Life Sciences Outlook
by Deloitte
important for accessing external
expertise and technology. And
technology companies, both large
and small, are already poised to
disrupt the industry.
ECONOMIC OVERVIEW
“Health life sciences” refers to the
application of biology and technology to improve healthcare, and
includes biopharmaceuticals, medical technology, genomics, diagnostics and digital health. The sector
generates a wide range of products,
including drugs, medical technology, diagnostics and digital tools.1
GROWTH TRENDS
PHARMACEUTICAL DRUGS
On the heels of a slow recovery,
global prescription drug sales are
forecast to grow at an impressive
annual compound rate of 6.5%
in the next five years. Worldwide
sales are expected to be US$1.06T
in 2022 (Figure 1) 2. This growth is
in contrast to the 2.2% compound-
The geopolitical climate is usher-
ing in a new era led by the passage
of tax reform in the United States
and Brexit in the United Kingdom.
In addition to embracing these
changes, life sciences companies
are looking for ways to meet the
opportunities and challenges coming. Forward-thinking organizations will be:
n Building an adaptable organization for the future of work
n Building a culture of courage to help counter uncertainty
n Building data integrity,
maximizing the value of data
n Building patient trust and
centricity, across the journey
of care
n Building a smart, cross-
functional regulatory approach
In order to grow, life sciences
companies will need to continue
to look for new partnerships and
operating models. Alliances and
partnerships will be particularly
ed annual growth rate (CAGR) in
2012-2016, but still under the 8.4%
CAGR before the global financial
crisis in 2004-20083. However, this
trajectory could be tempered by
pricing pressures and a potential
second patent cliff4.
Although not at previous levels,
most research-based pharmaceutical companies are reporting
an uptick in revenue and profits.
Spending on prescription drugs
is expected to increase in every
market except Venezuela over the
next few years.
Recovery in spending will be fueled by consolidation in generics
markets and increased budgets for
high-priced treatments, including
orphan drugs. Some companies
are still struggling with patent ex-piries, estimated to be a US$194B
risk for sales in 20225.
The industry will continue to look
to emerging markets for growth,
albeit not as aggressively as in the
past6. Among the top 20 pharma-