Life Sciences

The pharmaceutical sector is characterized by a dynamic global market, with strong growth prospects: demographic growth, unsatisfied medical needs, innovative products in the process of commercialization. Highly globalized, the sector is dominated by major global groups resulting from successive mergers and acquisitions.

At a time when world’s population is aging, biotechnology presents itself as a source of solutions to medical issues: the emergence of new therapies, the use of modified viruses to treat cancer and other infectious diseases.

Price pressure:

  • Governments are cooperating to put pressure on lower drug prices and set sustainable prices that are adapted to the social security system of different countries

 

Increased competition:

  • New entrants such as GAFA who are starting to invest heavily in this sector. Also competition on production costs from India and Asia

 

Growing counterfeit:

  • Counterfeit medicines are well established in developing countries and are beginning to affect the entire global pharmaceutical market

Restrictive regulation:

  • The sector faces many government savings plans that are muzzling the sector. Legal prohibitions (stem cells, patents, protection of animals), regulations relating to the production and circulation of products as well as health risks

 

Digital – Data :

  • In a sector where many customer data are confidential, the pharmaceutical industry must be able to take advantage of digital marketing to make the data a strategic asset and optimize the customer relationship

 

A variety of products more and more important:

  • Spread of generics whose launches immediately reduce the margins of principles, development of biotechnology drugs difficult to copy but more complex and expensive to manufacture

Data-driven strategy:

 

Merger / Acquisition:

  • Be able to create cost synergies and adapt its strategy to high growth sectors

Improve operations performance on the entire chain:

  • Externalization (management of clinical trials, manufacturing / quality control, support functions, new sales channels …), optimization of R&D platforms and networks, operational performance and industrial schemes

 

Develop traceability “at the box” to deal with counterfeiting:

  • Homogenization of standards, tools of traceability

 

Product innovation:

  • Continue product innovation by developing or acquiring new molecules with high potential that will offset the development of generics
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