Overview:
Life Sciences companies are pressured by constant regulatory reform, expiring patents, reduced research and development (R&D) budgets, growing challenges of chronic diseases, intense focus on mergers/acquisitions and intense competition. Eximius has supported clients in the Life Sciences sector in key areas such as strategy formulation, establish global centers of excellence, manage costs, business process automation and build effective global partnership.
Our key focus areas include –
- Biotechnology
- Medical Devices
- Pharmaceutical
Business Challenges and Issues:
Biotechnology:
The global biotechnology industry includes about 7,000 companies with total revenue of about $120 billion. Demand for biotechnology in the fields of medicine, agriculture, food, and science is driven by insurers’ willingness to pay for new medical treatments, the global need to produce more food for a rapidly expanding population, and scientists’ desire to find solutions for complex scientific and medical issues. Funding for biotech research is often provided by venture capital funds hoping to cash in on new products. The profitability of individual companies depends on the discovery and effective marketing of new products. Because the market for potential products is so large, small biotechnology companies can co-exist successfully with large ones if they have expertise in a particular line of research.
Some of the key challenges include –
- High R&D expense coupled with uncertainty of approval
- Dependence on medical insurers and third party payers
- Patent protection and growing threat of patent infringement lawsuits
- Need for partnership with large drug companies for product marketing
- Influence of venture capitalists and corporate investors
Medical Devices:
Global revenue for makers of medical equipment and supplies is about $350 billion. Key growth drivers include advances in technology and the increasing number of people over 65 who will increasingly need medical care. The industry is technologically advanced, and new product development is a major activity for most manufacturers. Companies also license or acquire technologies, enter collaboration agreements, and engage third-party contract research organizations (CROs) to further their preclinical research and clinical development efforts.
Some of the key challenges include –
- Dependence on regulators and insurers
- Product liability issues stemming from product recalls, lawsuits and regulatory investigations
- Expenses to manage and address patent and intellectual property related issues
- Rapid industry innovation leading to product/device obsolescence
Pharmaceutical:
The global pharmaceutical manufacturing industry generates more than $950 billion in annual revenue, and is expected to grow to $1.2 trillion by 2016, according to market intelligence firm IMS Health. The profitability of individual companies depends on their ability to discover and market new drugs. Large companies benefit from their economies of scale in research, manufacturing, and marketing. Because large research budgets don’t guarantee new products, many large companies supplement their own efforts by buying or licensing products from other companies.
Some of the key challenges include –
- Heavy government regulation at a time of rising health care costs
- Patent protection and growing threat from generic drugs
- Striking the right balance between R&D investment and other expenses
- Decentralized business support functions based on drug development and marketing cycle
Our Value Proposition:
- Business Transformation
- Corporate Development
- Due Diligence
- Mergers & Acquisitions
- Operations
- Strategy
- Technology Enablement