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| The Future of Pharma |
PwC report: From Vision to Decision: Pharma 2020
PwC recently published its latest report on the future of the pharmaceutical industry, titled “From Vision to Decision: Pharma 2020”. Since 2007 PwC has been studying the challenges and major trends the pharmaceutical industry faces. The report provides an in-depth look at the future for the industry, and below I’ve highlighted five major trends from the PwC report that are reshaping the marketplace.
1. Instances of chronic disease are increasing, placing even greater pressure on already stretched healthcare budgets.
75% of healthcare expenditures are related to chronic disease, according to the Centers for Disease Control and Prevention. In 2010, healthcare expenditures in the US neared $2.6 trillion, and accounted for 17.9% of the US gross domestic product (according to the Centers for Medicare and Medicaid Services). New ideas and tools are needed to help us decrease healthcare costs, while increasing the effectiveness of our healthcare system.
Life sciences companies can contribute solutions in the form of disease management and patient adherence programs. Industry experts agree that one way to decrease future healthcare costs is to boost patient engagement in managing their conditions and increase patient adherence rates.
2. Healthcare policy-makers and payers are increasingly mandating what doctors can prescribe.
One part of the puzzle for decreasing our healthcare costs is to standardize treatment approaches. There are many ways that treatment approaches can be standardized, and they most likely will include following recommended treatment guidelines, product-specific outcomes data, and pricing negotiations with manufacturers.
Life science companies need to be prepared for this shift. Know how your product compares to its competitors. Offer programs that enhance patient outcomes. This demonstrates partnership and that the company stands behind the products they offer.
3. A growing number of healthcare payers are measuring the pharmacoeconomic performance of different medicines.
Widespread use of electronic medical records will give them the data they need to insist on outcomes-based pricing. This is a game-changer for manufacturers, as they will have less power to set prices for their products. New digital tools will provide new options for managing disease and wellness; as well as provide the ability to capture outcomes data at the practice, institution, and health system level.
4. Boundaries between different forms of healthcare are blurring as clinical advances render previously fatal diseases chronic and the self-medication sector expands.
The entire healthcare industry is being transformed. Various factors are converging to change how healthcare is delivered. The center of this transformation is the patient, which when engaged and empowered to manage their health is a critical success factor. Digital health tools and new scientific understanding, which translates into novel and innovative treatments, enable these transformations.
Think about patients at the heart of your program. Understand patient challenges in managing their health and condition. Additionally, expand your view to encompass the entire healthcare system. Understanding shifts in healthcare delivery models, new digital tools and applications, and how patients are using these to manage their condition will help you to develop programs that provide value.
5. Governments are beginning to focus on prevention rather than treatment.
No longer is the focus on treating a condition. Significant advances have been made in screening and diagnostic testing for various cancers. Additionally, there is evidence to support that many chronic conditions are exacerbated, and in some cases caused by, poor lifestyle choices and decisions. Payers are looking to prevention and wellness initiatives as mechanisms for decreasing future healthcare costs.
Life sciences companies can contribute solutions in the form of disease management and wellness programs. These programs boost patient engagement in managing their conditions, and ultimately lead to decreased healthcare spending in the future.
These trends compound the challenges the industry already faces. There are many opportunities if the industry can look beyond their traditional role of providing new medicines. Life science companies that shift their focus to patients and providing innovative healthcare solutions will be successful in the year 2020.
I want to hear your thoughts. Do you agree that the trends highlighted are re-shaping the healthcare industry? What are you and your company doing to prepare for these shifts? Are there trends that you’d include on this list? This is an important discussion, so please share your thoughts.
