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Structural Trends to Profoundly Change Life Sciences Industry, Genpact Study Shows
Date:4/24/2012

NEW YORK, April 24, 2012 /PRNewswire/ -- A study released today by Genpact Limited (NYSE: G), a global leader in business process and technology management, has found that 2012 will see fundamental shifts in the life sciences sector, pushing companies to reconsider the traditional approaches to their business model.  The research sought to determine the key challenges and priorities facing the key functions within life sciences companies, including finance and accounting (F&A), finance administration and commercial operations. 

More than 100 senior directors and executive vice presidents in both financial and commercial operations at targeted life sciences and pharmaceutical companies were surveyed for this research, including a selection of in-depth interviews.  The research found that far-reaching changes in the approach to chronic diseases, medical technology, social networks, global health issues, large emerging markets and aging populations will have an enormous industry-wide impact, forcing life sciences companies to transform themselves in an atmosphere of increasing consumerization and tighter funding constraints.

Respondents indicated that they face a number of challenges in today's marketplace that are compelling them to respond with innovation in previously unexplored organizational areas. Historically well capitalized due in large part to blockbuster drugs and abundant pipelines, these companies are now confronted with the prospect of market share loss due to a number of factors: generic drug competition, regulatory pressure, insurance company price controls and shrinking R&D pipelines.

The results showed that 68% of respondents chose "cost reduction" as having the greatest potential impact on business in 2012, followed by pricing and reimbursement pressure (53%), new regulations (33%) and increased competition (24%). 
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SOURCE Genpact Limited
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