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After a whole year of feeding its M&A appetite, pharma is facing a
steadier period when it comes to dealmaking. Though major takeovers
will not be in the spotlight anymore, the industry will face other
challenges and trends that will mark its evolution.
the 3.2 trillion dollar
US healthcare
market is enormous
Rare diseases
in existence.
Pharma Industry
Outlook in 2016
Pharma Industry
Outlook in 2016
Pharma Industry
Outlook in 2016
RISE OF SPECIALTY MARKETSRISE OF SPECIALTY MARKETSRISE OF SPECIALTY MARKETS
PHARMACEUTICAL MARKET TRENDSPHARMACEUTICAL MARKET TRENDSPHARMACEUTICAL MARKET TRENDS
Americans are
affected by
rare diseases.
More than 450
orphan drugs
in development.
In the US
80 million millennials
will help propel a
new health economy
1/10
Voters are split on whether or not to repeal
the Affordable Care Act.
Lawmakers criticize high drug prices, putting
political pressure on pharmaceutical companies.
85% of US voters say the Affordable Care Act will
factor into how they vote in the presidential election.
POLITICS & HEALTHCARE:
LIKE A HORSE AND CARRIAGE
POLITICS & HEALTHCARE:
LIKE A HORSE AND CARRIAGE
POLITICS & HEALTHCARE:
LIKE A HORSE AND CARRIAGE
HEALTHCARE CONSOLIDATION SLOWSHEALTHCARE CONSOLIDATION SLOWSHEALTHCARE CONSOLIDATION SLOWS
2015 2016
A record year for M&As:
more than $600 billion
in acquisitions.
The healthcare buying
binge is expected
to slow.
INCREASED PAYER PRESSUREINCREASED PAYER PRESSUREINCREASED PAYER PRESSURE
2011 2012
TotalACOs
2013 2014 2015
744744
6464
Payers become more integrated into health systems.
Patent expirations trigger an aggressive push
toward generics.
Real World Evidence (RWE) and actual outcomes
data will drive contracting and payer access.
Rise of ACOs: Hundreds of new Accountable Care
Organizations continue to join Medicare Shared
Savings Program.
IMPACT OF LARGE BRANDED
DRUGS GOING GENERIC
IMPACT OF LARGE BRANDED
DRUGS GOING GENERIC
IMPACT OF LARGE BRANDED
DRUGS GOING GENERIC
Once drugs lose patent protection, generics siphon
off 90% of sales.
95% of new medicines fail during development.
Only 2 in 10 medicines recoup their R&D costs.
Major drugs are going off-patent in 2016.
BETTER USE OF DATA AND ANALYTICSBETTER USE OF DATA AND ANALYTICSBETTER USE OF DATA AND ANALYTICS
More pharma
companies will
embrace big data.
Companies can combine
data sources in ways
never before possible.
Data management
requires industry and
business process expertise,
as well as technology.
Strong analytics
help companies
mine big data.
Data proliferation
will facilitate more
insights that will
drive decision-making
for brand, medical,
and sales teams.
PLUG-AND-PLAY HEALTH DATAPLUG-AND-PLAY HEALTH DATAPLUG-AND-PLAY HEALTH DATA
52%of US clinicians
are comfortable with
mobile apps and
devices that monitor
vital signs.
Consumers are
embracing high-tech,
personal medical kits
to monitor vital signs.
The number of wearable
devices shipped to consumers
is expected to reach
130 million
by 2018.
More digital
patient data gets
shared along
the pathway.
More consumers,
especially millennials,
adopt health wearables.
73%of US
consumers consider
data security more
important than the
ability to easily
access it.
References: Health Affairs, Phrma.org, Wall Street Journal,
Centers for Medicare & Medicaid Services,
PwC Health Research Institute, CNBC, Dickson Data,
Bloomberg, FiercePharma, Huffington Post
Optymyze helps companies improve sales force and sales operations performance with
its award-winning cloud applications and business process management services. With
Optymyze Sales Operations as a Service, clients turn sales operations into a strategic
business advantage.
Find out more about Sales Operations Management solutions for the Pharmaceutical
industry at www.optymyze.com
Or contact us directly to speak with one of our Consultants.
info@optymyze.com +1-610-497-6381
About Optymyze
CHALLENGES IN THE SALES LANDSCAPECHALLENGES IN THE SALES LANDSCAPECHALLENGES IN THE SALES LANDSCAPE
Access to prescribers gets tougher:
42% of practices with 10 or more
doctors are "no-see" offices.
Sunshine Act and PhRMA Code
impact sales.
Prescribers fearful of losing patients:
37% of US consumers trust
doctors less if they are paid
by drug companies.
EXPERT TIP
Localize targets
and take advantage
of big data!
More pharma targeting tips at
Optymyze.com

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Pharma Industry Outlook in 2016

  • 1. After a whole year of feeding its M&A appetite, pharma is facing a steadier period when it comes to dealmaking. Though major takeovers will not be in the spotlight anymore, the industry will face other challenges and trends that will mark its evolution. the 3.2 trillion dollar US healthcare market is enormous Rare diseases in existence. Pharma Industry Outlook in 2016 Pharma Industry Outlook in 2016 Pharma Industry Outlook in 2016 RISE OF SPECIALTY MARKETSRISE OF SPECIALTY MARKETSRISE OF SPECIALTY MARKETS PHARMACEUTICAL MARKET TRENDSPHARMACEUTICAL MARKET TRENDSPHARMACEUTICAL MARKET TRENDS Americans are affected by rare diseases. More than 450 orphan drugs in development. In the US 80 million millennials will help propel a new health economy 1/10 Voters are split on whether or not to repeal the Affordable Care Act. Lawmakers criticize high drug prices, putting political pressure on pharmaceutical companies. 85% of US voters say the Affordable Care Act will factor into how they vote in the presidential election. POLITICS & HEALTHCARE: LIKE A HORSE AND CARRIAGE POLITICS & HEALTHCARE: LIKE A HORSE AND CARRIAGE POLITICS & HEALTHCARE: LIKE A HORSE AND CARRIAGE HEALTHCARE CONSOLIDATION SLOWSHEALTHCARE CONSOLIDATION SLOWSHEALTHCARE CONSOLIDATION SLOWS 2015 2016 A record year for M&As: more than $600 billion in acquisitions. The healthcare buying binge is expected to slow. INCREASED PAYER PRESSUREINCREASED PAYER PRESSUREINCREASED PAYER PRESSURE 2011 2012 TotalACOs 2013 2014 2015 744744 6464 Payers become more integrated into health systems. Patent expirations trigger an aggressive push toward generics. Real World Evidence (RWE) and actual outcomes data will drive contracting and payer access. Rise of ACOs: Hundreds of new Accountable Care Organizations continue to join Medicare Shared Savings Program. IMPACT OF LARGE BRANDED DRUGS GOING GENERIC IMPACT OF LARGE BRANDED DRUGS GOING GENERIC IMPACT OF LARGE BRANDED DRUGS GOING GENERIC Once drugs lose patent protection, generics siphon off 90% of sales. 95% of new medicines fail during development. Only 2 in 10 medicines recoup their R&D costs. Major drugs are going off-patent in 2016. BETTER USE OF DATA AND ANALYTICSBETTER USE OF DATA AND ANALYTICSBETTER USE OF DATA AND ANALYTICS More pharma companies will embrace big data. Companies can combine data sources in ways never before possible. Data management requires industry and business process expertise, as well as technology. Strong analytics help companies mine big data. Data proliferation will facilitate more insights that will drive decision-making for brand, medical, and sales teams. PLUG-AND-PLAY HEALTH DATAPLUG-AND-PLAY HEALTH DATAPLUG-AND-PLAY HEALTH DATA 52%of US clinicians are comfortable with mobile apps and devices that monitor vital signs. Consumers are embracing high-tech, personal medical kits to monitor vital signs. The number of wearable devices shipped to consumers is expected to reach 130 million by 2018. More digital patient data gets shared along the pathway. More consumers, especially millennials, adopt health wearables. 73%of US consumers consider data security more important than the ability to easily access it. References: Health Affairs, Phrma.org, Wall Street Journal, Centers for Medicare & Medicaid Services, PwC Health Research Institute, CNBC, Dickson Data, Bloomberg, FiercePharma, Huffington Post Optymyze helps companies improve sales force and sales operations performance with its award-winning cloud applications and business process management services. With Optymyze Sales Operations as a Service, clients turn sales operations into a strategic business advantage. Find out more about Sales Operations Management solutions for the Pharmaceutical industry at www.optymyze.com Or contact us directly to speak with one of our Consultants. info@optymyze.com +1-610-497-6381 About Optymyze CHALLENGES IN THE SALES LANDSCAPECHALLENGES IN THE SALES LANDSCAPECHALLENGES IN THE SALES LANDSCAPE Access to prescribers gets tougher: 42% of practices with 10 or more doctors are "no-see" offices. Sunshine Act and PhRMA Code impact sales. Prescribers fearful of losing patients: 37% of US consumers trust doctors less if they are paid by drug companies. EXPERT TIP Localize targets and take advantage of big data! More pharma targeting tips at Optymyze.com