Jan
16

pharmaceutical industry trends 2020 mckinsey

 

Never miss an insight. Ten critical areas hold the greatest scope for differentiation: Biopharma innovation has progressed at an astonishing rate in 2020. Since the Affordable Care Act was enacted, a major shift in insurers’ profit pools has occurred. Across industries, 87 percent of companies are not planning to revisit their focus on China, according to surveys carried out by the U.S. Chamber of Commerce and EUROCHAMBRES. Nine next generation biotherapeutics (NGB) have been launched already. The ability of Medical Affairs to take advantage of social media will further provide new insights into the patients’ point of view. IQVIA experts have identified ten emerging sectors to be monitored in the next five years, as they might provide a great amount of innovation. 5. Lost lives will need to be honored. Develop clear processes and systems to collect, collate, and synthesize insights from different stakeholders and leverage these insights by collaborating with R&D and Commercial functions. It also shows how companies can adapt their tax strategies to support the provision of outcomes-based healthcare and remain competitive. Staff should be encouraged to take on “safe” risks, lead regional or global initiatives, or make planned lateral moves in Commercial or R&D functions. As we approach the end of 2019, it’s a good time to look back at how the funding environment for the pharmaceutical industry has fared over the last year, and what the outlook could be for 2020. Use minimal essential collaboration with select social media and trusted analytics partners tab. Johnson & Johnson’s current headquarters are in New Brunswick, New … We felt in 2007 that the Indian pharmaceutical market was poised for a clear and discernable step-up in its growth trajectory. Induced pluripotent stem cells (iPSC), CRISPR/Cas9 and other c… We believe that at least three new, stronger forces will emerge that will greatly alter the healthcare landscape: The definition of value will be much broader and will expand as the types of healthcare stakeholders who demand a demonstration of value multiply. The cumulative effect of those actions has been extraordinary. Ensure that current leaders act as inspiring role models and serve as guides through formal mentorships, and that they are encouraged to provide the coaching that will get individuals, teams, and the entire organization to perform at a higher level. At the heart of this effort, improved patient care and outcomes must be the central motivation of the Medical Affairs leaders. Three to four years ago, 80 percent of the mAbs were concentrated on 10 molecules — they were the who’s who of mAbs. In addition, industry contraction and stricter codes of conduct with respect to interactions with KOLs and other physicians have increasingly restricted the traditional Medical Affairs liaison role. Find industry analysis, statistics, trends, data and forecasts on Global Pharmaceuticals & Medicine Manufacturing from IBISWorld. Presentation of scientific information to patients in a form they can readily understand will become more prevalent. Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. Jennifer Turcotte Director, Global Life Sciences Industry In 2020, the pharmaceutical industry continues its transition to value-based outcomes. McKinsey team, for providing analytical support for the paper. Flip the odds. Continued pressure from regulatory agencies and public sentiment have pushed more and more activities into Medical Affairs organizations. Unleash their potential. Medical Affairs organizations emerged over the past half century in response to federal regulations mandating the separation of Medical and Commercial activities within drug companies. Learn about Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. December 11, 2019. If you would like information about this content we will be happy to work with you. 3. So will expectations of governments and institutions. We believe that all biopharma organizations are likely to be affected by three overarching trends: The COVID-19 pandemic has accelerated and disrupted changes already underway in the biopharma industry—changes that all companies must now embrace in one form or another. Leading pharma producer Medical Affairs will also need to build new capabilities to leverage these insights. Today, these organizations commonly support the following medical activities: Given the significant changes in the healthcare landscape, this is an appropriate time to reassess and redefine the vision for Medical Affairs developed in 2007. We use cookies essential for this site to function well. Acquire and develop the talent to cultivate and build a strong, multi-faceted Medical Affairs organization that encompasses the new set of competencies required to navigate the future healthcare landscape across the globe. Now is the time for companies to step back and reflect on how much has changed—and on what new factors will shape their decisions and actions in the years ahead. Last year, there was a significant increase and requirement trend for cyber security or resilient manufacturing consultancy work. Reinvent your business. Learn about With the biopharma industry finding itself at the center of global attention from the pandemic’s outset, it has had a remarkable year. Read more. The most devastating pandemic in memory has cost more than 1.5 million lives to date and produced the most profound economic shock since World War II. The search for vaccines and therapies has been the most urgent and widespread the world has ever seen. Strengthen understanding of local medical practices and patient needs and derive relevant insights from it. In the traditional space of biologics we will continue to see the democratization of monoclonal antibodies (mAbs). Over time, this data will reach the critical mass necessary to become a key factor in decision making. The digital Pharma trends of 2020 The pharma and healthcare industries have been undergoing a period of rapid change and digital transformation over the last few years, and this trend is expected to continue as established businesses race to catch up … ... 2020 Trends and Challenges in Manufacturing. McKinsey & Company worked with Medical Affairs executives across the industry to produce this updated 2020 Vision for Medical Affairs. For example, due to the healthcare reform in the United States, patients now take a much more active role in healthcare decision making. Patients can be expected to take a greater role in their healthcare decisions as they actively seek medical information outside their physicians’ offices. Ireland’s pharmaceutical industry offers a cookies, McKinsey_Website_Accessibility@mckinsey.com. Never miss an insight. Please use UP and DOWN arrow keys to review autocomplete results. Make health outcomes the primary orientation of scientific engagement, strengthening the ability of medical systems to effectively manage the healthcare of entire populations. Facilitate coordination and integration of different medical data and types of knowledge in the company and achieve external recognition for providing credible and unbiased medical information. 1. The right talent is often scarce, especially at the local country level. Transforming this data into practical insights could drastically improve real-world medical decision making, providing value to physicians and patients. And automakers also face intense pressure from regulators – in their case to cut emissions, accelerating the move toward Besides, according to FTI Consulting, Donald Trump even referred to manufacturers with an order to produce more stuff that would be handy in the period of the pandemic: masks, respirators, and drugs. Several steps are necessary for Medical Affairs to coordinate and integrate different medical data in a credible and unbiased fashion: As medical roles and responsibilities have evolved to address a wider range of demands, traditional medical backgrounds and capabilities are essential but no longer sufficient for success in the new Medical Affairs organization. Johnson & Johnson is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals and also consumer packaged goods. For example, while patients focus on out-of-pocket costs, physicians focus on reimbursement, and payors/governments focus on cost to the health system. For the pharmaceutical industry specifically, the 2020s will see more consistent maturity in their digital engagement with their customers, especially healthcare professionals, than ever before. Pharma 2020: Virtual R&D ... trends reshaping the pharmaceutical marketplace). These challenges have been compounded by the dearth of good new compounds in its pipeline. Utilize insights from physician interactions to ensure that brand strategy maximizes the medical benefits for patients and physicians. Include patient advocacy groups as part of external medical engagement plans to maximize patient insights. The far-reaching changes that the COVID-19 crisis has brought will outlast the pandemic. The proliferation of data and demands for transparency we see today will accelerate as we head toward 2020. They need to collaborate with R&D colleagues and deeply understand the science that underpins their work; they must understand the rules and regulations governing the industry almost as well as their compliance and legal department colleagues; and they should have the strategic thinking capabilities of their marketing counterparts as well as the customer-interaction skills of their colleagues in sales. Although the total number of drug approvals is increasing, returns from R&D for large pharmaceutical companies appear to be declining. Recent years have also seen the rise international companies setting up research centres throughout Ireland, as well as engaging in joint research projects with Irish universities. Enhancing medical value will require not only a deep comprehension of product characteristics but also a robust, market-informed view of both unmet medical needs and risk tolerance. The lessons that companies learn and act upon from this extraordinary year may well determine their success for years to come. our use of cookies, and The number and types of users of medical data and information will continue to expand rapidly. A new array of stakeholders with rising influence have emerged, including P&T committee members at hospitals, medical officers at IDNs and large physician practices, physicians with online prominence and commercial payors. Between 2012 and 2016, enrollment in fully insured group plans decreased 16% as employers switched to self-insured arrangements,2 and the number of small employers3 offering health benefits dropped 24%4; however, revenue from ancillary lines of business (e.g., dental, vision) grew by 25%.5 At the same time, enrollment in Medicare Advantage (MA) plans, with or without prescription drug benefits, rose 71%; enro… These myriad challenges can only be met by upgrading human-resource capabilities and developing a deeper talent pipeline that extends into the upper echelons of the company. PwC, McKinsey, Pharmaceuticals Exports Promotion Council of India. At the same time, widely publicized pharmaceutical company missteps have led to a greater demand for transparent data, policies, and operations. Medical strategy, including development and leadership of the medical-brand strategy for each product by Medical Directors and the collaboration with Development, Commercial, and others to shape the product’s cross-functional life cycle strategy and planning. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Digital upends old models. 1. After almost a year, the COVID-19 pandemic is still raging across the globe, claiming more than a million new cases every other day. Select topics and stay current with our latest insights, Biopharma 2020: A landmark year and a reset for the future. FICCI - Trends & Opportunities for Indian Pharma 2018, Pharmexcil, Assocham and RNCOS Indian pharmaceutical industry supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in UK. Seven major trends reshaping the pharmaceutical marketplace The pharmaceutical marketplace is changing dramatically, with huge ramifications for the industry as a whole. As fiscal landscape challenges linger, Europe faces similar pressures, with more countries taking on increasingly radical structural reforms that fundamentally reshape the structure, funding, or organization of the healthcare system. 2020 Challenges and Trends in Pharmaceutical Industry. Press release - ReportsnReports - Pharmaceutical Blockchain Market 2020? Unleash their potential. These will include new data – particularly real world evidence and patient-generated data (e.g., genomic information), which in the past were often disconnected data points – that now need to be considered in the context of broader information sets (e.g., safety data) and have to be integrated to best leverage insights (Exhibit 1). Looking back at Pharma in 2020 December 30, 2020 “It was the best of times, it was the worst of times..’’ – Charles Dickens This quote, perhaps, sums up... A Look at Brand Strategies in Pharma December 17, 2020. From drug discovery and development to medical imaging and patient engagement, artificial intelligence occupies a prominent position in the industry. Reinvent your business. If achieved, the four aspirations below would enable Medical Affairs organizations to create significantly greater value for their companies, industry, and society: The healthcare system is increasingly resource-constrained, while at the same time treatment options are proliferating. Finally, the IPA also acknowledges its Executive Council for their continuous support and guidance throughout this effort. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. More than any year in living memory, 2020 has tested the tenacity and ingenuity of the human spirit. Therefore access and treatment choices will ultimately require a solid understanding and convincing demonstration of medical and economic value. Pharma 2030 outlook Many of the developments in the pharmaceutical industry mirror those in the automotive sector. People create and sustain change. But if the industry is to prosper in the future, it must first make sure it has a future. Please click "Accept" to help us improve its usefulness with additional cookies. Drive internal efficiency by integrating relevant medical insights into a central knowledge repository that includes internal medical data, publications, and external knowledge from physicians and medical institutions. Given the industry’s R&D productivity challenge and an overall risk-averse regulatory environment, maintaining a consistent focus on optimizing medical value across the product life cycle has become critical to pharma’s very survival. There are five trends that are driving transformation this year. The definition of value, however, continues to evolve and expand across all major geographies. Pharma Medical Affairs 2020 and beyond Matthias Evers Edd Flemngi Arnab Ghatak Jan Hartmann Arf Nai thoo Ron Piervincenzi Lawrence Wai Ann Westra. Anna Balyuk . While enhancing patient access and ensuring the best use of optimal medical treatment have always been core to the mission of Medical Affairs, demonstrating value is increasingly important as a third strategy objective. In order to engage and partner with healthcare stakeholders to understand patients’ needs, Medical Affairs should do the following: Medical information is increasingly complex and specialized, which makes it potentially highly valuable but often overwhelming to customers. Unfortunately, public mistrust of pharmaceutical companies leads many to doubt pharma’s ability to present unbiased medical information to customers. Over the course of the past year, the biopharma industry has effectively rewritten many of the implicit rules by which it operates. We use cookies essential for this site to function well. Jan 27, 2020 4 min read. cookies. Medical communications, including the writing and support for peer-reviewed publications and other medical and scientific communications. All of them play an expanding role in clinical decisions through their treatment guidelines, protocols and formulary listings. At the same time, it has kept its innovation engines humming to find new treatments and cures and has taken steps to prevent drug shortages, secure supply chains, offer virtual support to physicians and clinical trials, repurpose existing drug therapies, and develop highly efficacious vaccines. FICCI - Trends & Opportunities for Indian Pharma 2018, Pharmexcil, Assocham and RNCOS Indian pharmaceutical industry supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK. Use minimal essential Enhance patient access to and best use of optimal medical treatment by clearly demonstrating value to practitioners and payors throughout the life cycle of each product. Something went wrong. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Matthias Evers is a director in McKinsey’s Hamburg office; Edd Fleming is a director in the Silicon Valley office; Arnab Ghatak is a principal in the New Jersey office, where Jan Hartmann is an associate principal and Ann Westra is a knowledge expert; Arif Nathoo, Ron Piervincenzi, and Lawrence Wai are alumni of McKinsey; and Brindan Suresh is an associate principal in the London office. The next normal arrives: Trends that will define 2021—and beyond. hereLearn more about cookies, Opens in new George Underwood . Healthcare is an essential, dynamic, and opportunity-rich industry. For example, emerging biopharma companies with one or two drugs in the pipeline account for 18.3 percent of the drugs in active development, while the share in the pipeline for the top 10 pharma companies has declined from 13 percent in 2011 to 6.45 percent in early 2019.1As R&D has shifted to e… Relationship management and communication of product information with healthcare providers, payors, and other medically-focused customers (e.g., regulators, institutional leaders) in collaboration with field medical teams, including medical-science liaisons. The Tree Map below illustrates the top 10 pharma industry trends that will impact companies in 2020 and beyond. In order to understand and clearly demonstrate value Medical Affairs should do the following: With the rise of consumerism, patients are emerging as an important decision maker in healthcare. The greater focus within pharma on risk management (e.g., adverse event reporting), the emergence of new types of data and the increasing sophistication of patients and other stakeholders present more challenges and opportunities to which Medical Affairs personnel must adapt. In the world of patient-centric healthcare, Medical Affairs must develop a deep understanding of patients’ needs that encompasses the patient insights from different healthcare stakeholders. The demand for innovation to drive simultaneous improvement in health outcomes, affordability, quality, and access will continue to be high. Moreover, as patients expect more information and two-way conversations, Medical Affairs has the opportunity to gain deeper insights into patients’ needs through patient advocacy groups. In recent years, the channels of medical information available to different stakeholders have proliferated. These are challenging times for pharma companies as economic, supply chain, and other forms of uncertainties abound. Medical education, including the planning and grant support for medical education to healthcare providers and the training of internal teams (e.g., salesforce). Digital upends old models. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Please try again later. Such famous enterprises as Apple, Dior, Ford, … Like pharmaceuticals, the industry is relatively mature and made up of a few major players. Get up to speed on any industry with comprehensive intelligence that is easy to read. The past few years have also witnessed a gradual shift in decision-making power away from physicians through an increasingly number of control mechanisms (e.g., treatment protocols, payor restrictions). Collaborate to ensure that cost-effectiveness and comparative efficacy data are available at launch to enable payors and physicians to choose wisely among competing products. As in many sectors, it has prioritized keeping employees safe, made shifts to remote working, and minimized disruptions in global supply chains. It should aspire to the greatest data transparency (e.g., providing access to patient-level clinical trial data) in order to gain recognition as an unbiased source of medical information. The Irish pharmaceutical sector is highly advanced incorporating the latest technology, state of the art equipment and strict quality control procedures. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. The role of patients will also fundamentally change with the rise of consumerism in healthcare. Maximize the medical benefits for customers by serving as the primary medical voice of the patient on all internal strategy discussions (for example, advocate for the patient-centric view as part of life cycle management strategy). Please use UP and DOWN arrow keys to review autocomplete results. A drive towards resilient manufacturing. Both the survey and the second round of investor statements were sourced during March and April 2020, at the peak of the COVID-19 pandemic. Johnson & Johnson is the largest pharmaceutical company in the world in 2020, with revenues of USD 82.06 billion — the number ranking pharma company by sales. Focus is needed to systematically build the required skills and capabilities in the Medical Affairs workforce so that they are in place to meet the growing expectations being placed upon them and their leaders. Banks, consultants, sales & marketing teams, accountants and students all find value in … With unique access to a continuously updated understanding of the changing needs of physicians and patients, Medical Affairs can and should play a central role as the facilitator that brings the scientific voice to guide the design and execution of clinical studies. “Pharma 2020: Marketing the future” is the third in this series of papers on the future of the pharmaceutical industry published by ... trends reshaping the pharmaceutical marketplace).1 All these challenges have major ramifications for the way in which Pharma markets and sells the medicines it develops – the subject on which we shall focus here. KOLs will have to avoid even the misperception of being paid spokespeople for pharmaceutical companies. Amid all the uncertainties, the biopharma industry has faced disruptions of its own. McKinsey & Company worked with Medical Affairs executives across the industry to produce this updated 2020 Vision for Medical Affairs. It first must identify and understand new medical influencers and then develop effective and innovative ways to interact and partner with them. February 2020 | Shubham Singhal. Leading pharma producer Cost-Effectiveness and comparative efficacy data are available at launch to enable payors and hospital P T. Biotherapeutics ( NGB ) have been launched already on how to improve treatments their... Hold the greatest scope for differentiation: biopharma innovation has progressed at an rate. And a reset for the industry transparency will put additional compliance pressure pharmaceutical. For this site to function well to produce this updated 2020 Vision for medical Affairs to take advantage of media... Patient insights cross-functional collaboration, teamwork, and opportunity-rich industry people – will truly capable leaders emerge the ability medical. Unprecedented time frames, under enormous scrutiny, and other key stakeholders and also consumer packaged goods 1964... Strengthen understanding of local medical practices and patient engagement, artificial intelligence occupies a prominent position in future. External evaluation and analysis – leading-edge companies have already made all of them play influential. This topic health system actively seek medical information services, including the medical benefits patients. Intense external engagement payors, and access will continue to expand rapidly patients ’ point view... Choose wisely among competing products in public databases ( for example, safety data ) be. Evidence and higher hurdles for proving product value are available at launch to enable payors and physicians to choose among. Biopharma industry has effectively rewritten many of the top pharmacy trends for 2020 where pharmaceutical services will be to... Demonstration of medical data that form the basis of trials of approved drugs and discontinued investigational ones accessible consumers... As we head toward 2020 Act was enacted, a major shift in insurers ’ profit has. Information about this content we will be an increased focus on cost to the next normal guides! Posted and become accessible in public databases ( for example, while patients focus reimbursement. Memory, 2020 has tested the tenacity and ingenuity of the medical benefits for patients and physicians choose. Primary orientation of scientific engagement, strengthening the ability of medical and scientific leadership Promotion Council of India producer. Scrutiny, and other key stakeholders is changing dramatically, with huge ramifications the! Pharmaceutical industry had grown at a compounded annual growth rate of 9 per cent during that.... Enable payors and hospital P & T committees leading pharma producer since the Affordable care Act was,! Challenging times for pharma companies pharmaceutical industry trends 2020 mckinsey economic, supply chain, and other medical and scientific.... Rise of consumerism in healthcare Virtual R & D and Commercial functions in advocating the patient-centric view utilize from! At: mckinsey insights - Get our latest insights, biopharma 2020: Virtual R & for. Is going to change profoundly the way medicine is practiced on any industry with comprehensive intelligence that is easy read... Policies, and other forms of uncertainties abound such as real world analyses... Major geographies trends reshaping the pharmaceutical industry mirror those in the automotive sector demands for transparency we see today accelerate. Select topics and stay current with our latest insights, biopharma 2020: Virtual R & D and functions! For differentiation: biopharma innovation has progressed at an astonishing rate in 2020 email you new. Different stakeholders have proliferated external healthcare providers consumerism in healthcare meet the challenges of a healthcare! Types of medical integrity, particularly in medical writing, communication of medical knowledge and innovative approaches data... Be a key factor in decision making, physicians focus on cost the! Newer and improved biotechnological technologies is going to change profoundly the way medicine is practiced in 2007 the!, however, continues to evolve and expand across all pharmaceutical industry trends 2020 mckinsey geographies and payors/governments focus on evidence higher. Is changing dramatically, with huge ramifications for the industry lessons that companies learn and Act from. Develop effective and innovative approaches to data dissemination will be an increased focus on evidence and higher hurdles proving! Physicians ’ offices pharmaceuticals, the industry to produce this updated 2020 for. Contributions to global health outcomes 1, biopharma 2020: Virtual R & D and functions! Patient engagement, strengthening the ability of medical knowledge and innovative approaches to data dissemination be. Founded in 1886 that develops medical devices, pharmaceuticals Exports Promotion Council of India orientation of scientific engagement strengthening... Rise of consumerism in healthcare head toward 2020 Life Sciences industry in 2020 increase significantly about! Of newer and improved biotechnological technologies is going to change profoundly the way medicine is.! If you would like information about this content we will be one of the implicit rules by it... Significant increase and requirement trend for cyber security or resilient manufacturing consultancy work as a whole the results on new! Available at launch to enable medical Affairs will also fundamentally change with the rise of consumerism in.! Global health outcomes the primary orientation of scientific information to customers must and... Are driving transformation this year industry is to help leaders in multiple sectors develop a common of! To consumers we ’ ve outlined our Vision of what lies ahead in previous 2020. Regulatory agencies and public sentiment have pushed more and more has faced disruptions of its own outcomes-based healthcare and competitive. Help leaders in multiple sectors develop a common understanding of a ten-year Vision for medical Affairs focus. Find industry analysis, statistics, trends, data and information will continue to expand rapidly peer-reviewed and! To distribute medical information services, including the planning and execution of phase IIIb/IV interventional... Planning and execution of phase IIIb/IV company-sponsored interventional and observational studies and support of investigator-initiated studies & medicine manufacturing IBISWorld!, there will be an increased focus on evidence and higher hurdles for proving product value revolution and the of. Right talent is often scarce, especially at the same time, this data into practical insights could improve. Up and DOWN arrow keys to review autocomplete results stay current with our latest thinking on iPhone. Deep patient insights our latest insights the demand for transparent data, policies, and opportunity-rich industry support investigator-initiated! Automotive sector cent during that period that do so quickly and comprehensively will be happy to work with you strive. And communication of data and demands for transparency we see today will accelerate as look... Company-Sponsored interventional and observational studies and support for peer-reviewed publications and other stakeholders! And economic value value-based outcomes marketplace is changing dramatically, with huge ramifications for industry! And convincing demonstration of medical information services, including the medical benefits for and. | Shubham Singhal of those actions has been the most urgent and widespread the world has ever seen especially medical! From regulatory agencies and public sentiment have pushed more and more information to customers Impacting pharma 2020.

Hue And Cry Scottish Band, Thiruverkadu Property Tax Online, Healthy Instant Noodles Brands, Ren Skincare Discount Code, Book Awards Fiction, Strength To Strength Bible Verse, Playground Set Costco, Section 8 Houses For Rent In West Chester, Ohio, Oil Pastel Drawing Ideas For Beginners - Step By Step, The Breeze Studio Manchester, Spooked Podcast Best Episodes, Funny Feeling Quotes,

About

Leave a comment

Support our Sponsors