Pharma 2020: The Vision, the pharmaceutical industry is at a pivotal point in its evolution, particularly in relation to research and development. The patent on many of the medicines launched in the 1990s will expire over the next few years, leaving many companies very exposed; only four out of ten companies have enough products in their pipelines to fill the impending revenue gap. Pharma 2020: Virtual R&D - Which path will you take?, the second paper in the PwC Pharma 2020 series, explores how pharma companies could dramatically improve the R&D productivity. It contends that by 2020 the R&D process may be shortened by two-thirds, success rates may dramatically increase, and clinical trial costs could be cut substantially. New computer based technologies will create a greater understanding of the biology of disease and the evolution of "Virtual man"; to enable researchers to predict the effects of new drug candidates before they enter human beings. Along with changes underway in the regulatory and socio-political environment, this will enable Pharma to overcome one of the most fundamental issues it needs to resolve over the next decade.
Over the past decade, pharmaceutical and life sciences companies have entered a difficult period where shareholders, the market and regulators have all created significant pressures for change within the industry. From thinning pipelines and skyrocketing operating costs to calls for lower prices and a greater regulatory burden, the industry is confronting unprecedented challenges that are expected to radically transform the business.
PricewaterhouseCoopers holds the view that despite tremendous demand for its products, the industry's current business model is both economically unsustainable and operationally unsuited to act quickly enough to produce the types of innovative treatments that will be demanded by global markets. The industry requires a bold new vision and leaders who have the willingness to embrace a fundamentally new approach to their business. Pharma 2020: Virtual R&D provides a visionary perspective on the change drivers that will impact research and development productivity and offer greater opportunities for the development of truly innovative products which provide greater benefit to healthcare payers, providers and greater value for the companies involved.
This follows on from our intial report, Pharma 2020: The Vision, in which we state that, to flourish, companies will need to invest more in research, understand and demonstrate the value of their products, lower the cost of distribution, collaborate with partners at home and abroad, and provide value-added services to their customers. Though these and other changes that lie ahead are daunting, we believe that the rewards both in terms of human health and business success are enormous.
Our firm has extensive experience working with organisations across the industry, including: proprietary and generic drug manufacturers, specialty drug makers, medical device and diagnostics suppliers, biotechnology companies, wholesalers, pharmacy benefit managers, contract research organisations, and industry associations. We have made a deep commitment to understanding the forces affecting our clients' operations and have aligned our practice with the market to ensure that our people are deeply knowledgeable about the relationships that suppliers have with providers, payers, regulators and patients.
Whether you are an emerging company seeking venture capital to fund research or advice on a collaboration to commercialize a product, or an established company looking to improve or expand operations, you can count on our insight and experience to find the best approaches to achieve your financial, operational and strategic objectives.
Pharma 2020: The Vision, the pharmaceutical industry is at a pivotal point in its evolution, particularly in relation to research and development. The patent on many of the medicines launched in the 1990s will expire over the next few years, leaving many companies very exposed; only four out of ten companies have enough products in their pipelines to fill the impending revenue gap. Pharma 2020: Virtual R&D - Which path will you take?, the second paper in the PwC Pharma 2020 series, explores how pharma companies could dramatically improve the R&D productivity. It contends that by 2020 the R&D process may be shortened by two-thirds, success rates may dramatically increase, and clinical trial costs could be cut substantially. New computer based technologies will create a greater understanding of the biology of disease and the evolution of "Virtual man"; to enable researchers to predict the effects of new drug candidates before they enter human beings. Along with changes underway in the regulatory and socio-political environment, this will enable Pharma to overcome one of the most fundamental issues it needs to resolve over the next decade.
