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Biopharmaceutical High
Performance Business research

Accenture’s high performance biopharmaceutical research identifies new growth opportunities for pharmaceutical and biopharma companies.

Overview

Our analysis reveals that a select group of High Performers is breaking away from the pack by focusing on innovation- driven growth strategies substantiated by patient outcome-focused commercial models. These strategies are bringing the right products, with the right level of disease focus and differentiation to market through value-focused commercial models that are welcomed by reimbursers and appreciated by patients and the scientific community.

As the industry “pivots to the patient,” our research demonstrates that winning companies are those that excel in putting science back into Life Sciences by transforming cutting-edge discoveries into market viable products—applying equally rigorous science and analytics to deliver successful product launches and demonstrate improved patient outcomes.

Background

Accenture’s study of the Biopharmaceutical industry is in its eighth year and has analyzed the long term performance of “pure play” pharmaceutical companies (those with more than 75 percent of their revenue derived from pharmaceutical products).

Our 2013 update is based on year-end trailing 12 month Q3-2013 financials and analyzes the 16 largest pure play pharmaceutical companies in the world over an 8-year period. Collectively these companies had $468 billion in aggregate revenue, representing over half the global pharmaceutical market by net sales. The results have been compared with our 2012 study (based on year-end 2011 financials) to identify relative movements in the performance rankings.

A detailed analysis of historic financial performance is combined with consensus analyst forecasts to gain a forward looking picture of forecast revenue growth from portfolio and new product launches, as well as the impact of patent expiries and mature products.

Key Findings

Our 2013 Biopharmaceutical High Performance Business Study found:

  • Clear evidence of continued recovery in industry performance. Our research shows a continued recovery in the first ten months of 2013 with Enterprise Value up 14 percent and reaching 11 percent above the pre-recession peak of 2006. However, there is a wide range of performance between individual companies.

  • Some companies are breaking away from the pack through science-based innovation strategies. The four High Performing companies identified in the research have faster average growth forecasts than their peer group, largely driven by recent and upcoming product launches based upon scientific innovations versus truly diversified strategies.

  • The High Performers are putting science back into Life Sciences. The High Performers are outperforming the averages for the rest of the peer group on three key forward-looking metrics: a higher replacement revenue ratio forecast, higher five-year forecast revenue growth average and a higher proportion of forecast growth from new product versus averages for the rest of the peer group.

  • The High Performers are leading the industry's pivot to the patient. High Performers have been able to bring new products to market with a clear articulated view on how the drugs improve patient outcomes and are consequently able to carve out a unique place in today’s price and value-conscious health market.