Life Sciences Strategy 2020
The Life Sciences market isn’t just growing—it’s evolving. Everywhere in the industry, companies are working to make sense of uncertainty and rapid change and reinvent the ways they serve their customers. And everywhere a challenge or an opportunity
presents itself, Deloitte is positioned to playa critical role. As we chart our own courseto 2020, we will grow along with the industry we help propel. When everyone is working for a cause, moving in the same direction comes naturally.
Knowing our clientsWorking together to transform the journey of care
Moving forward to a larger role—and greater rewardsA fast-growing share of a fast-growing global market—and opportunities across all of our businesses
All signs point the same way: forward A passion to drive patient impactA passion to help clients succeedA passion to grow our global business
The life sciences sector is growing almost twice as fast as global GDP.
Our experience across the global health care landscape helps life sciences companies drive change that matters—through innovative and highly implementable solutions.
The addressable market for life sciences professional services is growing. 2015 addressable market $24.9B projected by 2020— 6 percent growth
Our revenue is poised to grow with it. Deloitte FY16 revenue Expected LS revenue by FY20 (9.9% CAGR) Expected LS market share by FY20
2015
$2.0T
$2.7T
$12.6B $2.8B
11.6% 15.1% 12.3% 4.5%
$1.9B
$0.7B$0.2B
$5.7B $4.5B
Americas EMEAGlobal Asia-Pac AmericasGlobal EMEA Asia-Pac2020
Knowing where our clients are headedAnd connecting our strengths to our clients’ needs
Our sector strategy is to be the most influential life sciences professional service provider through innovation, a collaborative working style, and comprehensive capabilites that we bring to our clients’ most critical needs.
Aspirations Priorities
Talent
Issues anddifferentiators
Solutions andinvestments
Positioning
Businesses
Outcomes
Differentiators
Clients
Forward-looking investments in solutions and offerings
Emerging solutions
Experimental pilot solutions
Targeted aquisitions
Innovation and new offerings will be vital—by 2020, half our revenue will come from solutions we’re building today while the other half will come from our foundational (current) offerings.
By using the system of resources we’ve built just for them.
Setting our priorities…Choosing our targetsAchieving global revenue growth of 9.9% will require a relentless focus on nurturing current accounts and developing the next generation of key accounts.
Partner with life sciences companies to transform the journey of care
Issues
Target heart-of-the-business issues with emerging and experimental solutions
Address shifts in the Enterprise Technology landscape (e.g., S4H, Cloud, SFDC)
Leverage our unique competitive position: integration, cross-sector reach, top industry experts, breadth and depth, and global centers of excellence
Become the dominant player in BioPharma and MedTech
Expand market share in Generics, Distributors, and Foundations
Expand relationships with “Crown Jewel,” “Strategic,” and MidCap clients
Invest selectively in “industry disruptors”
Solutions, Offerings, & Eminence
Explore targeted acquisitions to strengthen capabilities such as regulatory, compliance, cyber, and supply chain
Acquire and develop Life Sciences PPMDs in target markets
Promote a global theme of "Working for a Cause"
Focus Audit on early stage and mid-market clients
Expand Distribution and Generics footprint
Leverage Consulting, Risk and Financial Advisory, Audit and Tax solution investments
Become the dominant service provider in the Regulatory market
Processes/systems
Build out “emerging” and “pilot” offerings (e.g., Real World Evidence (RWE), Value Based PMI, and IoT)
Increase investments in eminence, marketing,and training
Expand global demand generation capabilities
Nurture a global life sciences community
Expand the number of Global "LCSP-ready PPMDs"
Collaborate with the health care sector to capture ecosystem opportunities
Create virtual CoEs and regional/global offering champions
People Talent
Roll out consistent global communications and learning platforms
Build deeper expertise in Therapeutic Areas and R&D
Geographies
Focus on the United States, the United Kingdom, Switzerland, Japan, Germany, China, France, Belgium, India, Brazil, Southeast Asia, and Mexico
Continue to expand annuity offerings such as CIS by Deloitte, ConvergeHEALTH Safety,and ConvergeHEALTH Miner
ConvergeHEALTH Safety™
Cloud-based management and analytics tools that improve pharmacovigilance through inquiry response, safety surveillance, quality and compliance management, and others
ConvergeHEALTHPatient ConnectA patient services and care management platform that helps companies deliver effective patient support and engagement
CIS by DeloitteHealth care compliance, risk, and technology-driven managed services solutions that help manage financial, operational, and reputation risk
Outcomes-based contractingAn analytics solution that delivers outcomes-based contracting with customized outcomes measurement for products and therapeutic areas
Precision WellnessA cognitive engagement app that collects data for testing patient engagement hypotheses and measures impact on behavioral outcomes
• Enterprise and cyber risk• Financial advisory
• Regulatory• Supply chain managed services
Not just more people—the right people, in the right places, with a shared vision.
Our global network of people will power the journey
Promote cultural theme of Working for a Cause through global community
Continue to add deep expertise, including Therapeutic Areaand R&D
Acquire and develop PPMDs in target markets, particularlyin EMEA and AP
Foundational offeringsCurrent capabilities and offerings
Novo-NordiskAbbVieEli LillyTevaAbbott AllerganBaxterBiogenCelgene
EisaiUCB SAGileadMcKessonOtsukaSyngentaThermo FisherFDANIH
AlexionIncyteMallinckrodtGoogleHuman Longevity Inc.AppleJazz PharmaPhillipsSamsung
GE HealthOrexigenRegeneronbluebird bioAgiosVertexNonProfit & Patient Advocacy Organizations
AstraZenecaBayerGSKSanofiMedtronic
MerckTakedaPfizer
Crown jewels Strategic Disruptors
Grow the next tier of at least five new “crown jewels” with at least $100M annual revenue
Develop 10 program clients with at least $50M in annual global revenue
Invest in industry “disruptor” companies and develop relationships with cross-industry, early-stage, and non-traditional companies
Bristol-Myers SquibbJohnson & JohnsonNovartisRoche
How practitioners can make a difference
Together, we will be working for a cause
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For internal use only.
Operatingperformance• Productivity and efficiency• Assets and capacity• Base Erosion Profit
Sharing (BEPS)
Mergers andacquistions• M&A strategy• Post-merger integration• Corporate finance• Transaction and
diligence support
Core growth• R&D• Market access/pricing• Diversification• Innovation
Innovation andbusiness model• Business model
transformation• Digital enterprise• mHealth
Analytics• Predictive, commercial,
and safety analytics• Bioinformatics• Precision wellness• Manufacturing and supply
chain operations• Real World Evidence
Customer and consumer• Brand reputation• Connectivity• Loyalty• Market access/pricing • Diversification• Personalized medicine
Quality and regulatory• Product safety and
reliability• Service reliabilty• Cyber security• IDMP
What is the right acquisition strategy?
What therapeutic areas, products, technologies, and markets should we invest in?
How do we drive margin performance?
How can we accelerate our time to market?
How can we address the traction biosimilars are gaining? What evidence fuels analytics?
What analysis creates insight for action?
How will we develop a patient-centric approach?
How will we adapt to the changing regulatory environment?
Where is Deloitte investing around the world?Dedicated assets and Centers of Excellence strengthen our solution offerings, eminence, and ability to serve clients.
Note: This is a point in time list.
Examples of solutions are not exhaustive
How do we demonstrate value to payers, providers, and patients?
Deloitte emerging markets account for the remaining $2.1B in global spend
Academic and industry partnershipsMIT
Singularity University
Intermountain Health
Regenstrief Institute
M2Gen
Industry associations AdvaMed
BIO
GPhAs
CDISC
Regional BIO associations including BIONJ, IBIO,
BIOCOM, CLSA, MASSBIO, PABIO
ISPOR
ABPI
Assets/Life Sciences CoEEMEA Life Sciences Launch and Value CoEUK, France EMEA Life Sciences Digital CoEUKEMEA Integration and Separation CoESwitzerland, Germany EMEA Life Sciences R&D CoEUKEMEA Medtech CoEGermany
CORE (Centre for Regulatory Excellence for Life Sciences)UKUS Center for Health SolutionsUK Centre for Health SolutionsAPAC Life Sciences Regulatory CoESingaporeConvergeHEALTHUSTherapuetic Area Transformation CoEIndia
Life Sciences AWS Hosting CenterIrelandHealth Economics and Outcomes Research (HEOR) CoEBelgium NeuroScience InstituteGermanyCenter for Additive ManufacturingUSHartford Data Center/Advanced AnalyticsUS
Clients are evolving along with the health care environment. Deloitte can partner with life sciences companies to help them achieve their business goals.
