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Increasing Economic and Business Risks Will Transform the Global Life Sciences Industry
Date:3/9/2009

Largest Companies Require Most Dramatic Changes

NEW YORK, March 9 /PRNewswire/ -- As the global life sciences industry struggles to manage rising risk, more than 40 percent of executives surveyed from companies with revenues of at least US$15 billion say that their companies need to institute significant changes across the whole organization to survive the next decade, according to the results of a new white paper released by Deloitte Touche Tohmatsu (DTT).

Reflecting the impact of the current economic downturn, 41 percent of executives surveyed believe that between now and 2015 sales forces will need to become more versed in economic issues and adept at selling the economic virtues of products to patients, physicians and payers.

Additionally, 26 percent of executives surveyed -- 39 percent in Western Europe -- say that the risks associated with research and development (R&D) are set to rise sharply through the next decade. While some companies do not anticipate changes to their approach to R&D, more than one-third of respondents indicate that they will mitigate risks attached to R&D by simply spending more money.

Developed in collaboration with The Economist Intelligence Unit, the DTT white paper, "The Future of Life Sciences Industries: Transformation Amid Rising Risk," (www.deloitte.com/lifesciencessurvey) is based on a global online survey of 360 senior executives in the life sciences industry conducted in 2008. The survey asked executives to predict the level of change their companies will undergo in the future to address growing risk and what areas would face the highest growth in risk. The survey also examined how companies will increase proficiency and deal with rising risks in these areas, as well as how they would manage internal and external risk.

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SOURCE Deloitte
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