The best way possible to understanding the future developments and the thorny challenges that life sciences companies will be facing is to have a quick look at some illustrative figures that speak for themselves.
Since the life sciences sector growth is closely tied to governmental health care expenditures, it seems important to notice that these expenditures are going to rise up in coming years – especially within low-income countries – so as to address the issue of the global rise of chronic diseases around the world, aggravated by the urbanization phenomenon, the sedentarization process, changing diets, and rising obesity levels. It is expected that by the year 2020, 50% of health care expenditures (around $4 trillion) will be spent to fight against cardiovascular diseases, cancer and respiratory diseases. In addition to these 3 main death causes, 74,7 billion people might be living with dementia by 2030 which is one major concern of the WHO (World Health Organization) and there are 9.9 million new cases reported every year. But global health expenditures were meant to increase anyway considering the constant aging of the world population since life expectancy is going to increase by one year in 2020 (604 million people will be more than 65 years old then) and also considering the national health concern that China and India will increasingly face : millions of diabetic patients. Even though a solid growth should be ensured in forthcoming years due to the increasing demand of both an aging population and of people coming from growing Asian and middle-eastern countries, it won’t be a pleasant walk either. In a few words: health reforms, chronical cost pressures, political instabilities.
Sadly, there is, as often, a witnessed mismatch between increasing R&D expenses and the taxpayer’s will
to pay less. However, the collective acceptance that innovative orphan drugs imply higher prices could
allow life sciences companies to compensate the financial losses induced by patent expiries. The little
extra of the field is that it has abundant resources in terms of innovation and not only in terms of
medical discoveries: the yet unseen opportunity of today’s technological progress could be a providential manna. The blockchain technology for instance – the one technology underlying the crypto currency bitcoin – is about to become vital for life sciences companies since it allows Data’s safety and transparency like never before. Intermediaries during transactions could hence become useless.
Given that the main challenges for life sciences companies are ahead of us – and not behind – our advisors should be able to answer any questions you may have and more importantly, they could help you figuring out who is calling the shots in the life sciences business as well as the investments that could matter in the future.