A fundamental reimagining of health care is underway. Technology, demographics and economics are shifting power away from drug developers and placing it in the hands of consumers (patients), payers and emerging digital entrants. These stakeholders are more informed, more connected and more demanding. They’re chasing better outcomes, better returns and better experiences.
Without change, the balance of power will continue to shift away from biopharma. Yet, there is a window of opportunity for biopharma companies to take an active and trusted role in this highly networked, data-rich environment. To do so, biopharma companies must leverage data and new partnerships to create not only highly differentiated products and services, but combinations of the two that result in improved outcomes. Biopharma firms must evolve from making drugs to delivering better customer experiences.
Seizing this opportunity will not be straightforward. It will involve taking bold steps toward a future where the calculus has changed:
- Demonstrated improvements in outcomes are higher priority than randomized trial results.
- Social and behavioral data are equally as valuable as clinical data.
- Services may become as important as products.
- Data sharing is as vital as data protection.
- New revenue sources will become available to those with ambition.
To be successful, biopharma companies will have to cooperate with traditional competitors and compete with tech-enabled newcomers.
Organizations have begun to react to the new industry dynamics. They are embracing digital strategies, redefining customer-centric policies, and taking a more commercially aligned approach to delivering outcomes. These efforts are important, but because they are often executed in a piecemeal and siloed fashion, the return on investment has been limited.
It is time for biopharmaceutical firms to embrace the fact that the future of health care will be radically different. To remain competitive as both the supply and demand-side of their traditional businesses are disrupted, biopharmaceutical companies can’t simply envision the coming changes. We challenge the industry to actively shape that future world — and to determine their place in it. In this paper, we describe some of the practical steps needed to make progress on this journey.
To read more, this piece was originally published on ey.com
This recent piece from our blog might also be of interest.
EY Legal Services Contacts:
Virginie Lefebvre-Dutilleul – Global Life Sciences Law Leader