Life sciences Predictions 2016

Analyst Life Science Predictions 2016
Christopher Manfredi

By 2018, digital drug launches will be standard, with
80% of the top Pharma companies announcing new
products via at least five digital channels.
Predicts 2016: Digital Generates Business
Value Opportunities in Life Science

By 2018, Social Media will be a standard part of the
marketing mix for 80% of the top 50 Pharma companies,
even though clear FDA guidelines will not have been issued.

By 2019, 50% of the top 100 life science companies will have
initiated at least one clinical trial involving wearable devices

By 2019, 30% of the top 100 life science R&D IT
organizations will have successfully moved big data projects
from proof of concept (POC) and pilots into production

By 2019, only 25% of life science organizations selling into
Europe will be truly identification of medicinal product (IDMP)-
compliant, although investments in turnkey regulatory information
management system (RIMS) solutions have been made

The rise of global health data, the volume of which is growing at around 50%
per annum, is being fueled by novel real-world sources that are freely
accessible. Vendor data will not go away, but those companies not also taking
advantage of this extra open-source information will be at a major
disadvantage to their competitors.
Predictions for Life Sciences
commercial Insights in 2016

Big data management and analyses are currently being effectively
managed in the background with the help of agility conferred by the
cloud. Expect that only IT management will need to focus on big data
issues over the next few years, leaving researchers and management to
focus on science and business
Perspective: U.S. Life Science Top 10 Market
Trends for 2016

RBM implementation by early adopters will deliver both near-
term cost and time savings, and the approach will become the
status quo in clinical trial design over the next three to five years
Trends for 2016

In 2016, we expect significant growth in the use of wearables,
clinical trial IoT technologies, and patient-centric apps, greatly
expanding the scope and contribution of mobile solutions in the space.
Trends for 2016

Pharma marketing spend to shift away from traditional
channels and become more heavily devoted toward
predictive analytics and closer dialogue with payers
Trends for 2016

Echoing the EIU’s forecast of a 2015 dip in global health care spending,
total global pharma sales (in nominal U.S. dollar terms) are expected
to drop 2.7 percent that same year. However, the longer-term outlook is
more positive: pharma spending growth should match health
spending growth at an average of 4.3 percent during 2015-2019, and
global pharma sales should reach $1.4 trillion by 2019
Deloitte 2016 Global life sciences outlook

Biotech drug sales were an estimated $289 billion in
2014 and are projected to grow to $445 billion by 2019

Analysts expect the worldwide biosimilars market
to reach $25 billion to $35 billion by 2020

Estimated global medical technology (medtech) segment revenues
are expected to increase from $369 billion in 2015 to $454 billion
in 2019, growing an average of 4.1 percent annually

With this in mind, Gartner predicts that IT spending in the life
sciences sector will reach $54 billion by 2019, growing at an
annual average of five percent from 2015-2019

The current net present value (NPV) of the pharma sector’s pipeline
surged 46 percent from 2013 to 2014, to an estimated total of $418.5
billion in potential future revenue. However, R&D expenditures are
forecast to grow just 2.4 percent between 2013 and 2020, reaching
$162 billion, below sales growth and continuing the industry’s
balancing act between fostering innovation containing cost

Specialty drugs are on the rise: they currently
comprise 31.8 percent of total drug spending
and are projected to reach 44 percent by 2017

By 2018, 50 percent of the 3.4 billion mobile
device users will have downloaded mHealth apps

The size of the global digital health market comprising wireless health,
electronic health records (EHR), electronic medical records (EMR),
mHealth, and telehealth, among others, was $60.8 billion in 2013 and expected
to increase to $233.3 billion in 2020, growing at a CAGR of 21.2 percent

Industry Top Predicts 2016: The Technology Foundation
for Digital Business Will Accelerate Industry Fluidity
Wearable devices, too, are creating opportunities in life science,
but leveraging the technology in clinical trials has proved to be
somewhat difficult. Leading companies in the life science industry
are, therefore, leveraging digitalization, as well as flexible and agile
business and organizational strategies, to deliver business value

Data analytics and visualization will heavily focus on
operationalizing analytics, including better enabling
ad hoc data analytics at all levels of the organization
Electric Utility Trends And PredictionsPerspective: U.S. Life Science Top 10 Market Trends for 2016

IoT will become an integral part of the clinical trials
process, contributing to as many as 50% of trials by 2020

Many will move ahead of the regulation curve by implementing
item-level serialization and tracking concurrently, well ahead
of the current deadline of 2023. This will help pharmaceutical
manufacturers avoid pre-deadline hiccups in the early 2020s.

New drug pricing decisions to expand beyond regional managers to
include global brand management which will result in pharmaceutical
companies delaying some new drug introductions in certain
countries and choosing to avoid other countries altogether

References
Predicts 2016: Digital Generates Business Value Opportunities in Life Science
Deloitte 2016 Global Life Sciences Outlook
Predictions for Life Sciences Commercial Insights in 2016
Perspective: U.S. Life Science Top 10 Market Trends for 2016

Life sciences Predictions 2016

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