Evolution of macro trends in the Life Sciences (LS) industry (e.g., IoT, emerging economies) has resulted in an expansion of the R&D pipeline for pharmaceuticals (small molecule) and biologics (large molecule) over the past decade (e.g., ~$262B in R&D pharmaceutical spend ’23). This growth is further driven by rising demand for biosimilars, generics, and personalized medicine (e.g., CAGT), as well as efforts to mitigate the forthcoming “patent cliff,” which is expected to see approximately $300B in drug and therapy revenue expire over the next five years. Expansion efforts will have ripple effects across the ecosystem extending to providers, payers, and patients.
In order to minimize costs and improve efficiency of the development process, LS companies have increasingly digitized and adapted various processes (e.g., modular drug design, outsourced trials, CDMOs) as well as implemented new forms of products & software (e.g., MES, simulation software, single-use equipment) across the development lifecycle.
In the future, LS companies that adopt “modernized” approaches to development and production will be better equipped to navigate these macro trends / shifts, enabling them to effectively serve patients and enhance health outcomes.
