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Deloitte Leadership Offers Crucial Convergence Considerations for Life Sciences Companies
Date:10/2/2007

mbination 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
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SOURCE Deloitte & Touche USA LLP
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