We are entering into a state of hypercompetitiveness in the life sciences industry as competition becomes more intense for a share of market that is growing at a slower rate compared to its peak in 20141.
Many recent trends are contributing to this, including:
Strong sales numbers (a $300 billion worldwide market) but with operating margins at 11 of the top 16 pharmaceutical companies having fallen more than three percent over the last few years;
An acceleration of healthcare spending with the potential to cause instability in the economy;
A $65 billion gap between the predicted growth in pharma spend in developed markets and new molecular entity (NME) growth forecast (2014-19).
In this environment, three actions can help life sciences companies compete and improve their flexibility and responsiveness: