... 2020 Trends and Challenges in Manufacturing. Embrace patient-centric healthcare by engaging and partnering with a broader range of healthcare stakeholders to more fully understand the different needs of patients and to be able to provide tangible value to patients. We felt in 2007 that the Indian pharmaceutical market was poised for a clear and discernable step-up in its growth trajectory. Use minimal essential The demand for innovation to drive simultaneous improvement in health outcomes, affordability, quality, and access will continue to be high. But if the industry is to prosper in the future, it must first make sure it has a future. Presentation of scientific information to patients in a form they can readily understand will become more prevalent. McKinsey & Company worked with Medical Affairs executives across the industry to produce this updated 2020 Vision for Medical Affairs. The ability of Medical Affairs to take advantage of social media will further provide new insights into the patients’ point of view. Recent years have also seen the rise international companies setting up research centres throughout Ireland, as well as engaging in joint research projects with Irish universities. “Pharma 2020: Challenging business models” is the fourth paper in the Pharma 2020 series on the future of the pharmaceutical industry to be published by PricewaterhouseCoopers. FICCI - Trends & Opportunities for Indian Pharma 2018, Pharmexcil, Assocham and RNCOS Indian pharmaceutical industry supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK. McKinsey Digital vereint strategisches Denken und technologische Kompetenz. Banks, consultants, sales & marketing teams, accountants and students all find value in … Pharmacies need to find ways to not only extend their hours of service but also offer ways for patients to easily fill their prescriptions and comply with their medications after they leave the pharmacy. Get up to speed on any industry with comprehensive intelligence that is easy to read. It also shows how companies can adapt their tax strategies to support the provision of outcomes-based healthcare and remain competitive. In order to engage and partner with healthcare stakeholders to understand patients’ needs, Medical Affairs should do the following: Medical information is increasingly complex and specialized, which makes it potentially highly valuable but often overwhelming to customers. While many of the trends predicted in 2007 will continue, the pace of change is expected to increase even more as we approach 2020. Most transformations fail. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Please email us at: McKinsey_Website_Accessibility@mckinsey.com Not only the size but also the nature of the pharmaceutical market is changing in emerging economies. Next-door healthcare will be one of the top pharmacy trends for 2020 where pharmaceutical services will be made more easily accessible to consumers. People create and sustain change. At the same time, widely publicized pharmaceutical company missteps have led to a greater demand for transparent data, policies, and operations. Therefore access and treatment choices will ultimately require a solid understanding and convincing demonstration of medical and economic value. Johnson & Johnson’s current headquarters are in New Brunswick, New … February 2020 | Shubham Singhal. The role of patients will also fundamentally change with the rise of consumerism in healthcare. Now, they represent 60 percent and will decline over time. PM News. Besides, according to FTI Consulting, Donald Trump even referred to manufacturers with an order to produce more stuff that would be handy in the period of the pandemic: masks, respirators, and drugs. To that end, Medical Affairs has to become more proactive about bringing insights from a broader range of external medical decision makers and influencers into early Clinical Development. If you would like information about this content we will be happy to work with you. Now is the time for companies to step back and reflect on how much has changed—and on what new factors will shape their decisions and actions in the years ahead. Staff should be encouraged to take on “safe” risks, lead regional or global initiatives, or make planned lateral moves in Commercial or R&D functions. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. our use of cookies, and social trends currently shaping the commercial environment, together with the development of new, more collaborative business models, will exert increasing pressure on effective tax rates within the industry. A new generation of … Jan 27, 2020 4 min read. With seven years now past, it is hardly surprising that significant change has occurred in the world in which the pharmaceutical industry operates, especially given the remarkable economic environment and the continued acceleration of technological change. Pharma 2020: Virtual R&D ... trends reshaping the pharmaceutical marketplace). Nine next generation biotherapeutics (NGB) have been launched already. These include strategic thinking, basic commercial skills, cross-functional collaboration, teamwork, and scientific leadership. Between 2012 and 2016, enrollment in fully insured group plans decreased 16% as employers switched to self-insured arrangements,2 and the number of small employers3 offering health benefits dropped 24%4; however, revenue from ancillary lines of business (e.g., dental, vision) grew by 25%.5 At the same time, enrollment in Medicare Advantage (MA) plans, with or without prescription drug benefits, rose 71%; enro… McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. These will include new data – particularly real world evidence and patient-generated data (e.g., genomic information), which in the past were often disconnected data points – that now need to be considered in the context of broader information sets (e.g., safety data) and have to be integrated to best leverage insights (Exhibit 1). Develop clear processes and systems to collect, collate, and synthesize insights from different stakeholders and leverage these insights by collaborating with R&D and Commercial functions. We use cookies essential for this site to function well. Research suggests that advertisements play an influential role in brand marketing. Medical education, including the planning and grant support for medical education to healthcare providers and the training of internal teams (e.g., salesforce). Press enter to select and open the results on a new page. Utilize insights from physician interactions to ensure that brand strategy maximizes the medical benefits for patients and physicians. In this article, we look at how digital business has evolved this year in the pharmaceutical industry, as well as the trends we see shaping the industry through 2020 and beyond. The Tree Map below illustrates the top 10 pharma industry trends that will impact companies in 2020 and beyond. Unfortunately, public mistrust of pharmaceutical companies leads many to doubt pharma’s ability to present unbiased medical information to customers. New forms of cooperation for data generation between pharma companies and other stakeholders (i.e., accountable care organizations [ACOs], integrated-delivery networks, payors) should be considered (for example, joint clinical trials with leading ACOs offering access to their information systems and to real-time data, prospective-outcomes research with payors in their patient population). At the heart of this effort, improved patient care and outcomes must be the central motivation of the Medical Affairs leaders. Make health outcomes the primary orientation of scientific engagement, strengthening the ability of medical systems to effectively manage the healthcare of entire populations. At the same time, it is important for Medical Affairs to re-establish pharmaceuticals companies’ integrity and credibility by communicating higher quality medical information that is of the highest relevance to customers. Interactions between pharmaceutical companies and various medical stakeholders will continue to evolve with the emergence of new decision makers and with greater public scrutiny of these relationships. For example, emerging biopharma companies with one or two drugs in the pipeline account for 18.3 percent of the drugs in active development, while the share in the pipeline for the top 10 pharma companies has declined from 13 percent in 2011 to 6.45 percent in early 2019.1As R&D has shifted to e… Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Moreover, as patients expect more information and two-way conversations, Medical Affairs has the opportunity to gain deeper insights into patients’ needs through patient advocacy groups. Three to four years ago, 80 percent of the mAbs were concentrated on 10 molecules — they were the who’s who of mAbs. Several steps are necessary for Medical Affairs to coordinate and integrate different medical data in a credible and unbiased fashion: As medical roles and responsibilities have evolved to address a wider range of demands, traditional medical backgrounds and capabilities are essential but no longer sufficient for success in the new Medical Affairs organization. McKinsey & Company worked with Medical Affairs executives across the industry to produce this updated 2020 Vision for Medical Affairs. This will require a more flexible engagement model that adapts to a changed communication landscape and captures opportunities utilizing multiple channels, including electronic and digital media (Exhibit 2). Use minimal essential We’ve outlined our vision of what lies ahead in previous Pharma 2020 papers. Induced pluripotent stem cells (iPSC), CRISPR/Cas9 and other c… Since the Affordable Care Act was enacted, a major shift in insurers’ profit pools has occurred. As we look ahead, we suggest keeping an eye on the following seven trends: Business model transformation. Deep patient insights have to come from engagements with emerging medical stakeholders and mining of new data, such as real world evidence. Select topics and stay current with our latest insights, Biopharma 2020: A landmark year and a reset for the future. Matthias Evers is a director in McKinsey’s Hamburg office; Edd Fleming is a director in the Silicon Valley office; Arnab Ghatak is a principal in the New Jersey office, where Jan Hartmann is an associate principal and Ann Westra is a knowledge expert; Arif Nathoo, Ron Piervincenzi, and Lawrence Wai are alumni of McKinsey; and Brindan Suresh is an associate principal in the London office. 15 pharma trends for 2020. The most devastating pandemic in memory has cost more than 1.5 million lives to date and produced the most profound economic shock since World War II. These are challenging times for pharma companies as economic, supply chain, and other forms of uncertainties abound. 1. Something went wrong. With the biopharma industry finding itself at the center of global attention from the pandemic’s outset, it has had a remarkable year. We'll email you when new articles are published on this topic. Subscribed to {PRACTICE_NAME} email alerts. From drug discovery and development to medical imaging and patient engagement, artificial intelligence occupies a prominent position in the industry. And it has done all that within unprecedented time frames, under enormous scrutiny, and with intense external engagement. The next normal arrives: Trends that will define 2021—and beyond. Learn about Enhance patient access to and best use of optimal medical treatment by clearly demonstrating value to practitioners and payors throughout the life cycle of each product. There are five trends that are driving transformation this year. After almost a year, the COVID-19 pandemic is still raging across the globe, claiming more than a million new cases every other day. To do that effectively, Medical Affairs must become an equal to the R&D and Commercial functions in advocating the patient-centric view. Strengthen understanding of local medical practices and patient needs and derive relevant insights from it. We believe that all biopharma organizations are likely to be affected by three overarching trends: The COVID-19 pandemic has accelerated and disrupted changes already underway in the biopharma industry—changes that all companies must now embrace in one form or another. The pharmaceutical industry had grown at a compounded annual growth rate of 9 per cent during that period. Learn about We'll email you when new articles are published on this topic. Today, these organizations commonly support the following medical activities: Given the significant changes in the healthcare landscape, this is an appropriate time to reassess and redefine the vision for Medical Affairs developed in 2007. The proliferation of data and demands for transparency we see today will accelerate as we head toward 2020. Digital upends old models. Like pharmaceuticals, the industry is relatively mature and made up of a few major players. They need to collaborate with R&D colleagues and deeply understand the science that underpins their work; they must understand the rules and regulations governing the industry almost as well as their compliance and legal department colleagues; and they should have the strategic thinking capabilities of their marketing counterparts as well as the customer-interaction skills of their colleagues in sales. Our flagship business publication has been defining and informing the senior-management agenda since 1964. The most striking thing is that M&A in the pharma industry remained vibrant throughout 2019 despite a global downturn across most other sectors. Demonstrate the clear value to patients of medical and scientific engagement with physicians, payors, and other key stakeholders. A drive towards resilient manufacturing. McKinsey team, for providing analytical support for the paper. Such famous enterprises as Apple, Dior, Ford, … For example, while patients focus on out-of-pocket costs, physicians focus on reimbursement, and payors/governments focus on cost to the health system. Note: 2020 revenue forecasts are estimates of McKinsey, API - Active Pharmaceutical Ingredients, F – Forecast, OTC - Over-The-Counter Under Budget 2020 -21, allocation to the Ministry of Health and … We foresee that the Indian pharma industry – contributions to global health outcomes 1, quality, and access continue! 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