Since companies have been racing to develop the COVID-19 vaccine while seeking to help their employees stay focused while working from home, a number of major issues and opportunities have been revealed for the drug industry.
In addition, current advancements in life sciences, like wearable technology and patient-centricity, are drawing greater interest. These developments, along with the slowing of the global market’s growth, suggest it’s now time for pharmaceutical companies to put their efforts into making the patient’s voice heard. Let’s look a bit deeper into the opportunities and challenges that the pharmaceutical industry is currently facing.
Opportunities for Investment
Life Sciences was primed to see M&A activities in the year 2021. The year saw the largest volume of deals in the sector despite challenging global economic conditions. The year 2022 was less favorable in terms of deals and volume. We anticipate that deals will rebound in 2023 as pharmaceutical companies with cash on hand look to increase their pipeline of products, and lower biotech value opens the way for companies to negotiate.
There has been an increase in collaborations and creative structuring agreements as well as portfolio reassessments that lead to divestitures of non-core assets. Private equity (PE) companies are likely to continue looking for opportunities to use capital amid high levels of dry powder, particularly in the subsectors of services. This is evident in J.P. Morgan’s massive move into life sciences, with its new division, Life Sciences Private Capital, promising a strong investment into the first half of 2023.
Although the development and research of treatments may yield more profits, it’s costly and time-consuming. The pressures of supply chain disruptions, higher cost of inputs, and rising energy costs are causing life science companies to put their money on M&A and other faster methods to stop revenue losses. They may also decide to sell off assets from their legacy and offer fresh M&A options for potential investors. You can find information about Franchise with Tata 1mg here.
Shifting Business Models
In the wake of the pandemic, inflation, other geopolitical issues, and other geopolitical factors, the business model of life sciences companies has changed. While the objective used to be broad, diverse portfolios, the focus has shifted to a focus on performance. This has led to an increase in spin-offs because large corporations are opting to focus on just a few important industries.
To reduce rising costs and enhance adaptability, companies need to focus on performance improvement as well as digital strategies. Implementing digital solutions, such as artificial intelligence (AI) cloud, real-world evidence (RWE) digital twin automation, advanced analytics, and automation emphasizing sustainable and green technology can boost efficiency and, consequently, reduce the pressure on costs.
Government Measures Disrupt the Market
Businesses must also consider the changes taking place to government drug rebates. In August of the year of his presidency, Biden was President and he announced the Inflation Reduction Act of 2022. The act is expected from 2023 to 2027; it includes measures to curb the government’s spending and fight the increasing cost of prescription drugs.
These steps will enable the government to decrease its deficit by 237 billion dollars over a decade. They also present a set of issues for companies looking to invest in the development of drugs. The quantity of new drugs that will be brought into the market will only drop somewhat, but the development of drugs in general will be affected.
The expansion of Medicare coverage will encourage the development of vaccines and biologics, and the new rebates will mean that companies must be cautious about the pricing of their new drugs to ensure that they maintain anticipated profits.
Now is the Time
It’s a tense but positive moment to be in the Life Sciences field. While the path ahead can be difficult, we see plenty of opportunities for acquisition and investment. With a high demand and abundant capital, The life sciences sector is expected to grow in the next few years. As a result, it is an excellent sector to invest in during times of uncertainty. If you have a good plan and a few precautions, this field could be an excellent investment for businesses.
Wearable and smart devices provide opportunities.
Inovio has signed an agreement worth $71 million for their smart devices dubbed Cellectra 3PSP and Cellectra 2000. These electronic toothbrushes are user-friendly and portable, which allows a vaccine called COVID-19 to be administered directly through the skin of a patient – one of the reasons why the technologies have prompted such massive investments from Inovio. Biotechnology company Inovio is at the forefront of developing a coronavirus vaccine, and with clinical phase 1 trials in progress, the end is in reach.
Additionally, wearable technology is being developed in the pharmaceutical industry because of its simplicity and utility. It’s crucial that pharmaceutical companies, such as software and device developers and data suppliers, as well as wearables companies, work together efficiently on these projects. Still, there’s also the issue of getting the patient’s voice heard.
The importance of patient-centered care is now in the spotlight.
As healthcare technology transforms from a fantasy to a reality, businesses, as well as governments, must cooperate alongside patients to make sure that they’re making every effort to improve the health and well-being of patients.
The chief operating officer of Aparito the world’s leading digital health provider – has warned that patients aren’t being actively involved in the development of wearable technology. He also says that they need to make them heard to be able to provide wearable devices that are user-friendly and can provide information that’s crucial for patients.
In their Annual Benchmark Survey of Patient-Centrics, The Aurora Project found that 91% of respondents believe that biotech, pharma, and medical device manufacturers need to focus more on the needs of patients. Companies working in the field of digital health and those who are pursuing the life sciences field must place patients at the helm and earn the trust of the public.