While new entrants provide an
opportunity for companies to
drive innovation, they also pose an
undeniable threat. Unable to cope
with the new age capacities and
diversities, the old school pharma
may find itself outside the value
chain. In the digital economy,
smaller companies, often with one
asset, are increasingly trying to
control that asset throughout its
life cycle. Even with limited infrastructure, they could compete with
pharma giants in their domains.
Focus on expanding
a richly networked
Digitization, no doubt, is helping
establish a richly networked and
collaborative ecosystem. While
a lack of manufacturing capacity
for next generation therapies still
poses a challenge.
Tech giants diversifying into
health care and investing in start-ups are masters of data. They know
how to simplify the patient experience and are developing medical
grade technology for both diagnostics and therapeutics. In 2018,
the first tech giant received an
FDA clearance demonstrating that
regulatory is also poised for disruption from these new entrants.
According to a recent survey,
more than 80 percent of medtech
R&D leaders plan to partner with
organizations outside of medtech
— like technology and health care
companies. See Chart 3.
such a system provides an excellent scope for value creation, it
also poses risks from unmonitored
third-party activities. Data partners, the Internet of Things (Io T),
and the growing Internet of Medical Things (IoMT) have constantly
been warning about the surfacing
cyber risks in pharma. Therefore,
leaders are expected to develop
management frameworks and
partner with those having compatible risk profiles. Digitization
of health care processes has also
given way to mounting patient expectations. This essentially means
that life sciences leaders should try
to gain a deeper understanding of
patient experiences and expectations when designing value chains.
See Chart 4.
While digitization brings in ample
opportunities, it also exposes
pharma companies to vulnerabili-ties like cyber threats, especially in
a scenario where interdependency
and collaboration are scaling.
With digitization of tools and
processes, patient expectations too
have risen. Stakeholders should
create coherent and meaningful
experiences through the entire
chain of patient interactions across
all phases—from R&D and product launch to commercialization.
Focus on outsourcing
Pharmaceutical giants are moving
to adopt strategic and relationship-based outsourcing models
as opposed to the traditional
transactional engagements. This
will likely stimulate biologics and
data-driven clinical innovation,
and bolster manufacturing capacity. The upcoming year could see
more outsourcing of expertise,
Focus on new entrants
Next generation or technology startups and large tech companies continue to
threaten the status quo.
Also witnessing regulatory disruption as a result of tech companies
More than 250 startups are focused on gene-based therapeutic solutions.
Six of the top ten tech giants are diversifying into health care and life sciences.
They are developing both diagnostics and therapeutics, and using their deep
understanding of the consumer to enhance and simplify the patient experience.
Next gen therapies
Gene therapy Cancer
Lack of manufacturing capacity is expected to continue to present a significant
challenge for next-generation therapies
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