Deloitte Focuses on 'Transformation, Not Transactions' as the Necessary
Trend at AdvaMed 2007
WASHINGTON, Oct. 2 /PRNewswire/ -- Deloitte & Touche USA LLP Life Sciences Industry Group Vice Chairman Terry Hisey will lead a discussion on the intricacies of convergence partnerships tomorrow at AdvaMed 2007.
Amidst increased competition, R&D stagnation, expanding consumer demand, and pressures to reduce health care costs, companies in all sectors of the life sciences industry are finding new opportunities for innovation, growth and differentiation through convergence. Convergent solutions -- combination products that integrate two or more core technologies (diagnostics, devices, and/or drugs) -- are resulting in more patient-centered, efficient diagnosis and treatment.
Although partnerships are common in the life sciences industry, partnering to create convergent solutions presents unique challenges. Life sciences companies must make several strategic decisions in choosing and managing the convergence pathway. During his panel discussion, Mr. Hisey will highlight various examples of convergence, identify the driving forces behind the convergence trend, and discuss the pathways to convergence in the marketplace today. He will also propose a framework for considering investment alternatives under different scenarios of technological uncertainty, as well as present strategies for choosing a specific convergence pathway, managing successful cross-sector partnerships and alliance networks, and addressing regulatory challenges.
"AdvaMed's C-level audience commands true industry leaders who can provide insight into capitalizing on trends as they are unfolding," said Kenneth Mendez, Senior Executive Vice President and Chief Administrative Officer of AdvaMed. "Convergence is an area that holds a high level of interest, as it may provide tremendous growth opportunity for the life sciences industry."
"Developing a combination product requires more than the integration of disparate technologies," said Mr. Hisey. "Most companies look outside their walls and across sector lines to access additional capabilities. They often believe they have instituted all the elements needed for effective partnering, but many do not execute these elements with the rigor and intensity that is needed to build and sustain successful partnerships. Companies that view convergence as an opportunity for mutual transformation-one that allows firms to work symbiotically with each other-may achieve greater success than those that see convergence only as a transaction involving the exchange of ideas, resources, and capabilities."
A Deloitte Research report, Managing Pathways to Convergence in the Life Sciences Industry, co-authored by Mr. Hisey and John Rhodes, Global Managing Partner for the Deloitte Touche Tohmatsu Life Sciences Industry Group, takes a closer look at this trend, the forces driving convergence today, and the ways that companies can succeed in their attempts at convergent solutions. The paper examines several examples from industry heavyweights like Johnson & Johnson and Medtronic to illustrate early successes in the field. The report also explores market conditions, such as scientific advances, an aging population, and shifting health care needs that have catalyzed the need and opportunity for convergent solutions. This paper is available at: http://www.deloitte.com\US\convergence .
"Many of the early examples of convergence involve combining diagnostics or devices with drugs, but this is shifting as new opportunities emerge to integrate diagnostics and devices with sophisticated instrumentation and information technologies, as well as convergence among major pharmaceutical companies in select therapeutic areas of collaboration," notes Mr. Rhodes. "Companies that successfully adjust to and capitalize on the market opportunities that arise from this shift will be better positioned to compete in the expanding marketplace."
About DTT Life Sciences and Health Care Industry Group
The DTT Life Sciences and Health Care (LSHC) Industry Group, made up of the LSHC practices of Deloitte member firms, is comprised of more than 3,500 member firm industry professional in over 40 countries. The LSHC practices' understanding of the industry's challenges and their ability to quickly respond with integrated, comprehensive solutions put Deloitte member firms in a unique position to help. The Deloitte member firm LSHC practices work with their clients to shape the evolution of the industry. Together, they can help bring discoveries to life and improve the quality of care while working to create and sustain long-term, bottom-line success. Deloitte member firms provide professional services to over 80 percent of the life sciences and health care companies in the Fortune Global 500. For more information about the DTT LSHC Industry Group, email email@example.com or visit the website http://www.deloitte.com/lifesciences.
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 140 countries. With access to the deep intellectual capital of approximately 150,000 people worldwide, Deloitte delivers services in four professional areas - audit, tax, consulting, and financial advisory services - and serves more than 80 percent of the world's largest companies, as well as large national enterprises, public institutions, locally important clients and successful, fast-growing global growth companies. Services are not provided by the Deloitte Touche Tohmatsu Verein, and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas.
Deloitte & Touche USA LLP is the US member firm of Deloitte Touche Tohmatsu. In the US, services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP and their subsidiaries), and not by Deloitte & Touche USA LLP. For more information, please visit http://www.deloitte.com.
|SOURCE Deloitte & Touche USA LLP|
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