Industry Trends: By The Numbers

Compiled by Cari Kraft, Jacobs Management Group, Inc.

$300B

Size of US medical device market in 2030

The projected size of the US medical device market will top $300 billion by 2030, according to a KPMG report. China will grow to $200B, followed by France, Germany, India, Japan and the UK. Source: KPMG International Strategy Group Report on Medical Devices 2030, published in 2019 (see Healthcare Sales and Marketing’s November/December 2019 issue for highlights) 32%

Percentage of Gen Z consumers who are dissatisfied with traditional medical treatment

A recent study showed that nearly a third of Generation Z and 12% of millennials don’t find traditional healthcare services to be satisfactory. They are healthcare “shoppers” more than their parents and grandparents, whose dissatisfaction is in the single digits. Source: Accenture 2019 Digital Health Consumer Survey, February 2019

15%

Percentage of healthcare spending directed towards value-based concepts

It’s expected that 2019’s expenditure in value-based care concepts added up to about 15% of total spending. This affected the number of risk-sharing contracts between providers and drug/device OEMs, driving business value. Source: Frost & Sullivan 2019 Top Growth Opportunities in Healthcare by Region and Key Sectors, January 2019

3-6%

Global CAGR for industry

The global pharmaceutical market will exceed $1.5T by 2023, growing at a 3-6% compound annual growth rate. This is a slowdown from the past five years, which averaged 6.3% CAGR. The U.S. and pharmerging markets, like China, will be the drivers. Source: IQVIA Institute for Human Data Science, “The Global Use of Medicine in 2019 and Outlook to 2023,” January 2019

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$3.29B

Keytruda growth in 2019

Merck & Company’s Keytruda grew more than any other pharmaceutical product last year, over $3 billion, more than twice the growth of number two, Gilead’s Biktarvy, which added $1.6B. Other leaders were Revlimid, Eliquis, Ozempic, Duplxent, Tagrisso, Imbruvica, Ocrevus and Stelara. Source: Evaluate’s Vantage 2020 Preview, December 2019 (see highlights in this issue)

2VS

Number of top 20 brands who will not face competition by 2023

In the next few years, only two of the current top 20 original brands, nivolumab (Opdivo) and pembrolizumab (Keytruda), will not be facing generic or biosimilar competition. This will significantly affect the landscape of LOE (loss of exclusivity) worldwide. Source: IQVIA Institute for Human Data Science, “The Global Use of Medicine in 2019 and Outlook to 2023,” January 2019

$350B

Pharma/Life Science sector deal value

The pharma/life science sector rose to unprecedented levels in total deal value in 2019, coming in at over $350B. Two large deals, BMS/Celgene and AbbVie/ Allergan, led the way. Pent-up demand for deal making led to aggressive action on strategic agendas last year. Source: PWC Global Pharma & Life Sciences deals insights Year-end 2019