2019 Global Life Sciences Outlook by Deloitte

Deloitte 2019 Global Life Sciences Outlook

Deloitte is one of the premier consulting companies in the world. It has more than 286,200 professionals globally, and is the 4th largest privately owned company in the United States. Deloitte has been ranked number one by market share in consulting by Gartner, and for the fourth consecutive year, Kennedy Consulting Research and Advisory ranks Deloitte number one in both global consulting and management consulting based on aggregate revenue. So it makes sense to be alert to their wisdom about our industry. Here’s a brief summary of their recent Global Life Sciences Outlook for the year. To access the whole report, go here.

Partnerships, patients and data Strategic transformation is at the core of life science companies as they build new business models for the future. To accelerate change, focus will be on developing innovative and relationship-driven partnerships and creating real value for patients. Data is now the currency of life sciences, and mobilizing data throughout the enterprise, transforming work, and using technology symbiotically will be fundamental to advancing digital transformation. In 2019, the life sciences sector will see a strategic rise of the digital mindset and further adoption of transformative technologies. While traditional investment vehicles, like mergers & acquisitions, can expect a sharper focus, external innovation can become a meaningful culture change-agent through innovative and creative partnerships with new entrants and nontraditional players.

Chart 1

The digital age requires more transparency and disclosure and a need for real relationship-driven partnerships will extend to all sector stakeholders—patients, advocacy groups, and regulators —and also to outsourcing vendors critical to the supply chain. Data will be the force behind new revenue models and crucial to understanding and delivering an exceptional patient experience. Continued pricing pressures, increasing access to drugs, growth of gene and cell therapies, and uncertain trade policies will further change the dynamics of the market. The 2019 Global Life Sciences Outlook gives insights into the global life sciences economy and reviews the trends impacting

Chart 2 businesses as they look to accelerate change and elevate the patient experience. The outlook provides suggestions for stakeholders to deal with the changing global economy and discusses examples from the market. The report also provides leaders with key questions and actions to consider in the year ahead. See Chart 1. Global life sciences sector issues in 2019

STRATEGIC FOCUS ON DEALMAKING AND EXTERNAL INNOVATION In 2019, biopharma faces a compelling strategic imperative for external innovation. The simultaneous hunt for next gen medicines

Strategic focus on deal-making and external innovation

External innovation is likely to continue to be a strategic focus for pharma companies that may face patent expiries, competition from generics and biosimilars, weak new drug pipelines, and growing technology needs

Licensing

Leads deal-making, constituting 93 percent of deals 93%

M&A

Even with a mega-deal to start 2019, companies are expected to go back to their core, possibly shedding non-core assets, and likely doubling down on therapeutic focus.

Joint ventures

against declining R&D returns make external deals a key innovation source for companies. It is likely to be the dawn of a new age of deal-making, especially, for companies looking to take the lead in next-generation therapies. Large, transformative acquisitions in the US$60-70 billion range defined 2018 and the beginning of 2019. This year, we will see an increase in appetite for mid-sized strategic transactions that complement a company’s core and shedding of non-core assets. See Chart 2. KEY TAKEAWAY: Companies need to aim to strengthen their R&D pipeline through mergers and acquisitions, licensing, and strategic partnerships. However, this year, the transactions are likely to be more complex with innovative structuring, as opposed to the conventional framework. While companies may be rearranging portfolios based on pricing controls, acquisitions are expected to be very strategic with a focus on core therapies or specialties. As a result, a lot of activity is also expected in divestitures. Focus on new entrants As digitization continues to shape the corners of pharma, a new generation of startups and tech giants have emerged, disrupting the status quo and threatening pharma’s legacy culture. While pharma giants are investing in gene-based therapeutic solutions, more than 250 startups are already developing these therapies and building them around the patient. These startups could merge and form a whole new breed of company with a very different culture around innovation and life sciences. In 2019,

Focus on new entrants

Next generation or technology startups and large tech companies continue to threaten the status quo.

More than 250 startups are focused on gene-based therapeutic solutions.

Six of the top ten tech giants are diversifying into health care and life sciences.

They are developing both diagnostics and therapeutics, and using their deep understanding of the consumer to enhance and simplify the patient experience.

Also witnessing regulatory disruption as a result of tech companies

Next gen therapies

Adoptive cell transfer Monoclonal antibody

Immunotherapies

Gene therapy Cancer vaccines

Lack of manufacturing capacity is expected to continue to present a significant challenge for next-generation therapies

a lack of manufacturing capacity KEY TAKEAWAY: www.deloitte.com/lifesciencesoutlook While new entrants provide an opportunity for companies to for next generation therapies still poses a challenge. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed Tech giants diversifying into to becoming the standard of excellence. Disclaimer drive innovation, they also pose an undeniable threat. Unable to cope health care and investing in startThis publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. ups are masters of data. They know About Life Sciences and Health Care at Deloitte Touche Tohmatsu Limited with the new age capacities and The Deloitte Touche Tohmatsu Limited’s life sciences and health care (LSHC) industry group is composed of more than 12,000 professionals in more than 90 countries. These member firm professionals understand the diversities, the old school pharma how to simplify the patient expericomplexity of today’s life sciences and health care industry challenges, and provide clients with integrated, comprehensive services that meet their respective needs. In today’s environment, LSHC professionals from across the Deloitte network help companies to evolve in a changing marketplace, pursue new and innovative solutions, and sustain long-term profitability. may find itself outside the value ence and are developing medical For more information about the DTTL LSHC industry group, email dttlshc@deloitte.com or access www.deloitte.com/lifesciencesoutlook. ©2019. For more information, contact Deloitte Touche Tohmatsu Limited. grade technology for both diagchain. In the digital economy, nostics and therapeutics. In 2018, smaller companies, often with one the first tech giant received an asset, are increasingly trying to FDA clearance demonstrating that control that asset throughout its regulatory is also poised for dislife cycle. Even with limited infraruption from these new entrants. structure, they could compete with According to a recent survey, pharma giants in their domains. more than 80 percent of medtech R&D leaders plan to partner with Focus on expanding organizations outside of medtech a richly networked — like technology and health care companies. See Chart 3. ecosystem Digitization, no doubt, is helping establish a richly networked and collaborative ecosystem. While such a system provides an excellent scope for value creation, it also poses risks from unmonitored third-party activities. Data partners, the Internet of Things (IoT), and the growing Internet of Medical Things (IoMT) have constantly been warning about the surfacing cyber risks in pharma. Therefore, leaders are expected to develop management frameworks and partner with those having compatible risk profiles. Digitization of health care processes has also given way to mounting patient expectations. This essentially means that life sciences leaders should try to gain a deeper understanding of patient experiences and expectations when designing value chains. See Chart 4. KEY TAKEAWAY: While digitization brings in ample opportunities, it also exposes pharma companies to vulnerabilities like cyber threats, especially in a scenario where interdependency and collaboration are scaling. With digitization of tools and processes, patient expectations too have risen. Stakeholders should create coherent and meaningful experiences through the entire chain of patient interactions across all phases—from R&D and product launch to commercialization. Focus on outsourcing Pharmaceutical giants are moving to adopt strategic and relationship-based outsourcing models as opposed to the traditional transactional engagements. This will likely stimulate biologics and data-driven clinical innovation, and bolster manufacturing capacity. The upcoming year could see more outsourcing of expertise,

Chart 4

Focus on expanding a richly networked ecosystem

Digital technologies and massive connectivity are creating rich networks of connection, collaboration, and interdependence Rich networked ecosystems could create new value, provide a competitive advantage, and accelerate learning The need for companies to translate learning into innovation has never been greater

Managing third-party risk

Adapting to an increasingly complex environment

Broader-based and extended enterprise risk

Lack the necessary visibility and monitoring of third-party activities and platforms

Life sciences companies are ultimately responsible

Manage ‘cyber everywhere’

Keep patients at the core!

Chart 5

www.deloitte.com/lifesciencesoutlook

About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Focus on outsourcing Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed to becoming the standard of excellence.

Disclaimer

This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall A shift from transactional outsourcing relationships to more strategic, be responsible for any loss whatsoever sustained by any person who relies on this publication. relationship-based models for biologics, data-driven clinical innovation, and

About Life Sciences and Health Care at Deloitte Touche Tohmatsu Limited

The Deloitte Touche Tohmatsu Limited’s life sciences and health care (LSHC) industry group is composed of more than 12,000 professionals in more than 90 countries. These member firm professionals understand the complexity of today’s life sciences and health care industry challenges, and provide clients with integrated, comprehensive services that meet their respective needs. In today’s environment, LSHC professionals from across manufacturing capacity. the Deloitte network help companies to evolve in a changing marketplace, pursue new and innovative solutions, and sustain long-term profitability. For more information about the DTTL LSHC industry group, email dttlshc@deloitte.com or access www.deloitte.com/lifesciencesoutlook. Outsourcing expertise in AI, robotic, and cognitive automation, and cloud computing. ©2019. For more information, contact Deloitte Touche Tohmatsu Limited.

Data-driven clinical innovation

Influenced by patients’ experiences with vendors and CROs

Vendors that provide platforms to effectively integrate data from multiple systems into a central decision-making tool should be in demand

Biologics

Increasingly partnering with academia &

CROs for R&D capabilities

Manufacturing capacity

Only 1/3 of manufacturing—whether in the development stages or after commercial launch—is estimated to be conducted in-house Need to building more strategic, long-term partnerships with CMOs and CDMOs to streamline the supply chain

New vendor relationship

Need a game plan / predetermined objectives for how new vendors can meet requirements especially cognitive automation, AI, and cloud computing. Sector growth driven by biopharmaceutical outsourcing is also a possibility. Strategic partnerships with academia and contract research organizations (CROs) indicate that companies are focusing on strengthening R&D capabilities. See Chart 5. KEY TAKEAWAY: Strategic, long-term partnerships are a requisite for pharma companies to streamline supply chain, better manage the capacity gap arising from the shift to biologics and personalized medicine, and thereby improve time-to-market. Sustaining close relationships with vendors is critical for maintaining compliant operations, because an oversight may cost pharma companies their reputation. Knowledge management is moving to the next level in the pharma space with advanced technologies like AI, machine learning, and IoT. Collaborating with new partners for transformation Digitization of health care has transformed the way patients, providers, and innovators interact. A highly patient-centric future is already surfacing and organized patient advocacy groups are playing an increasingly important role. In 2019, collaborative approaches will be key for working with patients and regulators, advancing drug development and the Internet of Medical Things. Large and small companies will also need to work together to minimize cyber risks in the ecosystem. See Chart 6. KEY TAKEAWAY: In this highly digitized and connected world where patients have

complete visibility into the experience they will be provided, it is imperative for companies to double the focus on customer experience. Companies should prioritize interpreting the burden of a disease on specific groups by building a culture where patients are partners, and not just consumers. Advanced technologies like AI can play a critical role here by helping pharma companies produce highly personalized solutions at competitive prices within shorter durations. Integrating connected medical devices into existing care pathways require collaboration across the IoMT ecosystem that

Chart 6 can be facilitated by partnerships and joint ventures. Transformative technologies in life sciences The physical, digital, and biological worlds converge in Industry 4.0. Forward-thinking pharma companies are moving beyond pilots and focusing on how new technologies can add value. These are some of the technologies driving digital transformation in life sciences. Artificial Intelligence (AI): AI is just beginning to be applied in life sciences to help with intelligent use of data. It has the potential to revolutionize diagnoses, treatment

Collaborating with new partners for transformation

Patients

Becoming partners in the design of their health care experience

Developing a true partnership with patients—leveraging patient data and understanding the burden of disease, the caregiver’s role, access decisions, and the health care systems involved Increased importance - Patient advocacy groups, national disease organizations, venture philanthropy

Regulators

Regulators benefiting from more collaborative approaches, such as co-regulation, self-regulation, and international coordination. Companies are viewing regulatory functions as a strategic asset and are developing the skills to effectively collaborate with regulators.

A collaborative approach to drug development

Master protocols

Medical Affairs collaborating with R&D

Medtech partnerships in the IoMT

Move from innovative product suppliers to insightful partners in health care

Collaboration between providers, manufacturers, and suppliers is seen as key to bridging gaps in medical device cybersecurity

Impact of master protocols

Impact of cycle time savings

Traditional patient enrollment and site-startup time: 117 weeks

Master protocol patient enrollment and site-startup time: 96–102 weeks

Impact of cost savings

Traditional cost: $11.2M

Master protocol cost: $9.5–$9.8M

Savings: 13%–18% (15–21 weeks) Savings: 1.3%–1.6% (12–15% weeks) planning, patient monitoring, and drug discovery.

Internet-of-Medical-Things

(IoMT): The rising number of connected medical devices—together with advances in the systems and software that support medical grade data and connectivity—have created the IoMT. Connecting devices is currently a priority as sensors are transforming diagnosis and the way patients are treated and monitored.

Software-as-a-Medical-Device

(SaMD): Software is changing how clinicians practice medicine, how consumers manage their own health, and how patients and providers interact. SaMD is a software that provides one or more medical functions and is usually embedded in hardware. The algorithms powering SaMD are already proving better than some clinicians’ diagnoses. Blockchain: Blockchain has emerged as a potent solution to aggregate data with ease and share it securely in an automated and error-free way.

DIY diagnostics and virtual care:

Tools that provide at-home convenience can also help with faster diagnoses and provide 24/7 access to health coaching and monitoring. DIY diagnostic tests can help low-income or rural consumers determine if a condition warrants a visit to a doctor or hospital. Future of mobility: The emergence of connected, electric, and autonomous vehicles will bring another transformation in the pharma world by expanding mobility and thereby, access to care and democratization of clinical trials. See Chart 7. KEY TAKEAWAY: Disruptive technologies have

Chart 7

Transformative technologies in life sciences

Artificial intelligence (AI)

The potential to revolutionize diagnoses, treatment planning, patient monitoring, and drug discovery

Internet-ofmedical-things (IoMT)

Valued at US$41.2 billion in 2017, the IoMT market is expected to rise to US$158.1 billion in 2022

Software-as-aMedical-Device (SaMD)

Allows patients to play a more active role in their own health care

SaMD has, at times, outperformed the accuracy of diagnoses by trained clinicians

Regulation of SaMD is expected to need to become more agile

Blockchain

Potential solution to more easily aggregate and share health data in a secure, trusted, automated, and error-free way

DIY diagnostics and virtual care

Consumers are increasingly open to new channels of care—particularly at-home diagnostic testing

Could help low-income or rural consumers determine if a condition warrants a visit to a doctor or hospital

Future of mobility

Shifting attitudess toward mobility and changing the way people and goods move

Could improve access to care

certainly transformed health care platforms and emerging techReal-World Evidence (RWE) and and life sciences. But organizanologies are measuring value and focusing on end-to-end, AI-drivwww.deloitte.com/lifesciencesoutlook tions would need to look at how outcomes with greater efficacy. Big en, internally-developed solutions. the disruptive technologies can Data driven insights can dramatiSee Chart 8. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are work in tandem to drive meaningcally transform patient care and legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than ful transformation and provide enhance productivity of trials. KEY TAKEAWAY: 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed value. Many companies are still in the experimental stage when it comes to digital. To realize their full potential and keep pace with technology’s rapid evolution, regulation of these technologies needs to become more agile. Mobilizing data, the currency of life sciences innovation Forward-looking life sciences leaders who have adopted digital R&D seems to have embarked on a new journey with the digital wave where trials are less burdensome and more engaging. Patients are collaborators during clinical trials and not just passive participants. The emergence of virtual clinical trials has eliminated the need for travel, thereby, expanding the geographical reach and accessibility from a patient-care point of view. R&D executives are placing greater emphasis on the role of In 2019, the early adopters of digital technologies and platforms could benefit from better engagement with patients, deeper insights from clinical trials, and faster cycle times for products in development. Creating value with new business and operating models Digitally maturing biopharma companies are exploring ways of applying an enterprise-wide apto becoming the standard of excellence. Disclaimer This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. About Life Sciences and Health Care at Deloitte Touche Tohmatsu Limited The Deloitte Touche Tohmatsu Limited’s life sciences and health care (LSHC) industry group is composed of more than 12,000 professionals in more than 90 countries. These member firm professionals understand the complexity of today’s life sciences and health care industry challenges, and provide clients with integrated, comprehensive services that meet their respective needs. In today’s environment, LSHC professionals from across the Deloitte network help companies to evolve in a changing marketplace, pursue new and innovative solutions, and sustain long-term profitability. For more information about the DTTL LSHC industry group, email dttlshc@deloitte.com or access www.deloitte.com/lifesciencesoutlook. ©2019. For more information, contact Deloitte Touche Tohmatsu Limited.

Mobilizing data, the currency of life sciences innovation

Transforming clinical development with digital R&D—can support making trial participation less burdensome and more engaging by redefining how patient care is delivered during clinical trials

Treating trial participants as collaborators instead of subjects Novel clinical trial designs: Virtual trials—As many as half of all trials may be done virtually in the not so distant future, netting significant cost savings New regulatory guidance meant to expedite adaptive clinical trials and allow researchers to evaluate multiple aspects of a drug in development in a single trial

Adoption of big data analytics and digital platforms should be help better measure value and outcomes

Includes health records, wearable device data, and/or social media accounts Digital technology expediting recruitment and diversifying participants ROI of real-world evidence (RWE)

Greater emphasis and focusing on end-to-end, AI-driven, internally-developed solutions. Likely to be shaped by an increase in strategic data partnerships and new ways of procuring data

Digital technologies/platforms =

Better access/engagement + Deeper insights + Faster cycle times

Chart 9

www.deloitte.com/lifesciencesoutlook

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed Creating value with new business and operating models to becoming the standard of excellence.

Disclaimer

This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.

About Life Sciences and Health Care at Deloitte Touche Tohmatsu Limited

The Deloitte Touche Tohmatsu Limited’s life sciences and health care (LSHC) industry group is composed of more than 12,000 professionals in more than 90 countries. These member firm professionals understand the complexity of today’s life sciences and health care industry challenges, and provide clients with integrated, comprehensive services that meet their respective needs. In today’s environment, LSHC professionals from across the Deloitte network help companies to evolve in a changing marketplace, pursue new and innovative solutions, and sustain long-term profitability.

For more information about the DTTL LSHC industry group, email dttlshc@deloitte.com or access www.deloitte.com/lifesciencesoutlook. ©2019. For more information, contact Deloitte Touche Tohmatsu Limited.

Learning how to scale, enterprise-wide solutions, creating value in novel ways—companies are exploring new ways of doing business and applying an enterprise-wide approach to digital transformation

Adopting a consumer-driven model—a “B2C thinking” is transforming the patient experience

Digital tools for engaging patients—a third of consumers are interested in using apps for health care engagement

Finding new revenue models—Transforming from a product sector to services sector

What is their role in the patient-journey and the value they provide? Patients want care and solutions that are simplified, coordinated, customized, and accessible New entrants are demonstrating that health consumers are willing to pay for convenience Focus on wellness—move from ‘sick’ care to ‘health’ care

Data as being seen as a possible revenue generator, particularly in Medtech proach to digital transformation. All of these approaches require patient centricity. B2C thinking: Organizations aligning with how consumers respond to or use products or services—like digital health apps, telemedicine, wearable monitoring devices, etc. can design top-notch engagement strategies. Engagement tools: Patients who are informed about their condition and involved in their treatment decisions tend to have better health outcomes and typically incur lower costs. Focus on prevention and digital therapeutics: Digital therapeutics can be a new source of revenue for life sciences, potentially providing reimbursement through insurance plans in the same way as drugs or medical technologies. Opportunities to monetize data: The challenge for life sciences companies is building trust. 40 percent are willing to share their data for health care research or to improve a device. Fewer are willing to share information with device manufacturers. See Chart 9. KEY TAKEAWAY: Life sciences leaders are also looking to leverage advanced digital technologies to identify new revenue sources. The sector will likely need to harness the shift from product to service. Companies should have a vision for their role in the patient journey and the overall health care system. Advancing digital transformation in life sciences More than three-quarters of biopharma companies agree that their organizations need new leaders to

Chart 10

Advancing digital transformation in life sciences

More than 3/4 of biopharma companies agree that their organizations need new leaders to succeed in the digital age.

Many companies are recruiting outside of life sciences for digital expertise.

Currently, only 20 percent of companies feel they have matured in their journey to becoming a digital enterprise.

Life sciences companies should start with determining and articulating their ambition—prioritizing initiatives, anchoring decisions, and focusing on the future.

succeed in the digital age. Many companies are recruiting outA greater percentage of digitallymaturing biopharma companies lytics and machine learning. The increased use of advanced technol www.deloitte.com/lifesciencesoutlook side of the life sciences sector for digital expertise. Currently, only 20 percent of companies feel they have matured in their journey to becoming a digital enterprise. See Chart 10. are exploiting new ways of doing business as opposed to exploiting organizational competencies. Collaboration is seen as a key differentiator. Leaders should not only encourage collaboration internally across functions, but also exterogies does not mean human effort will be replaced, rather, it will be leveraged for high level tasks so that efficiencies can be optimized and adversaries are eliminated. See Chart 11. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed to becoming the standard of excellence. Disclaimer This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. KEY TAKEAWAY: nally. They also need to provide a About Life Sciences and Health Care at Deloitte Touche Tohmatsu Limited KEY TAKEAWAY: To advance digital transformation in 2019, life sciences companies should start with determining clear vision and purpose for their organization’s digital investments and empower people to think difTo maximize the potential value of advanced technologies today and minimize the potential adverse imThe Deloitte Touche Tohmatsu Limited’s life sciences and health care (LSHC) industry group is composed of more than 12,000 professionals in more than 90 countries. These member firm professionals understand the complexity of today’s life sciences and health care industry challenges, and provide clients with integrated, comprehensive services that meet their respective needs. In today’s environment, LSHC professionals from across the Deloitte network help companies to evolve in a changing marketplace, pursue new and innovative solutions, and sustain long-term profitability. For more information about the DTTL LSHC industry group, email dttlshc@deloitte.com or access www.deloitte.com/lifesciencesoutlook. ©2019. For more information, contact Deloitte Touche Tohmatsu Limited. and articulating their ambition. ferently. pacts on the workforce tomorrow, This means prioritizing initiatives, The future of work requires a fresh organizations should put humans anchoring decisions, and focusing perspective and the sector is bein the loop—reconstructing work, on the future. Leaders can then be ginning to embrace new recruits, retraining people, and rearranging poised for adapting new operatlike chief digital officers (CDOs), the organization. Companies can ing models, transforming work coming from outside the life scicreate incubator spaces in innoculture, implementing technology, ences sector. In addition to having vation clusters around the globe, and scaling solutions. a digital-first attitude, outsiders specifically designed to support Transforming work will increasingly be sources of expertise for advanced data anaearly-stage companies that need facilities, mentoring, and networking to progress. •

Transforming work

Organizations displaying higher digital engagement and data analytics skills appear to have leaders that embrace change and employees who are willing to get on board with new initiatives.

A greater percentage of digitally-maturing biopharma companies are exploiting new ways of doing business as opposed to exploiting organizational competencies.

Collaboration is seen as a key differentiator.

Well-being is emerging as a strategic priority.

CDOs are being recruited from other industries with the expectation that they could provide fresh perspectives.

Life sciences is competing with other industries for scarce, tech-savvy talent.

Increasing use of tech—AI, robotic, cognitive—not replacing workers but shifting the focus onto high-level tasks.

www.deloitte.com/lifesciencesoutlook

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed to becoming the standard of excellence.

Disclaimer

This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.

About Life Sciences and Health Care at Deloitte Touche Tohmatsu Limited

The Deloitte Touche Tohmatsu Limited’s life sciences and health care (LSHC) industry group is composed of more than 12,000 professionals in more than 90 countries. These member firm professionals understand the complexity of today’s life sciences and health care industry challenges, and provide clients with integrated, comprehensive services that meet their respective needs. In today’s environment, LSHC professionals from across the Deloitte network help companies to evolve in a changing marketplace, pursue new and innovative solutions, and sustain long-term profitability.

For more information about the DTTL LSHC industry group, email dttlshc@deloitte.com or access www.deloitte.com/lifesciencesoutlook. ©2019. For more information, contact Deloitte Touche Tohmatsu Limited.