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

ecutives saying that over the next decade, most discovery and early-stage research will be conducted outside large life sciences companies.
  • When asked to identify where they believe risk will rise most sharply in the next 10 years, respondents highlighted the areas of pricing and sales, marketing, regulatory affairs, talent management and R&D.
  • "Most creative industries have encountered challenges when facing disruptive technologies," said John Rhodes, DTT Life Sciences Leader. "In the case of life sciences, these companies will survive and prosper by addressing new customer needs, whether economic, health or both. Companies have to be willing to move away in some cases from past things that made them great to the new realities of delivering innovative medicines and devices within the economic realities of today's markets."

    "The results of this survey clearly indicate that life sciences companies are now realizing that their business models must change," said Terry Hisey, vice chairman and U.S. industry leader of Deloitte LLP's Life Sciences Industry Group. "The full implications of these shifts have yet to be wholly understood; however, life sciences companies may be facing the prospect of strategic transformation as an ultimatum rather than an option. They will be challenged to work together with regulators and payers over the next decade to find new approaches that work for everyone in order to thrive."

    Survey Demographics

    Of the 360 executives responding to the 2008 survey, 40 percent came from North America, 24 percent from Western Europe, 22 percent from Asia-Pacific, 7 percent from Eastern Europe and 7 percent from the rest of the world. Participants represented different sectors within the life sciences industry, including healthcare services (23 percent), pharmaceutical research and development (22 percent), biotechnology (11 percent), pharmaceutical ma
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    SOURCE Deloitte
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