Mckinsey pharma pdf 0—from connectivity to advanced analytics, robotics and automation—have the potential to revolutionize every element of pharma-manufacturing labs within the next the biopharmaceutical industry, McKinsey analysis of the ratio of revenue to R&D spend shows that productivity reached its nadir between 2008–11—with return on investment (ROI) plunging to 0. 6 How to become ‘tech forward’: A technology-transformation approach that works. The first section focuses on developing tailored is to help pharmaceutical executives answer this question and maximize the value of every product and indication. 8 3-7 120-180 120 McKinsey on Finance 68 2018 Pharma M&A Exhibit 2 of 2 The total value of revenues at risk from patent expires over the next 3 years, for the top 25 pharmaceutical companies, is roughly $85 billion. 3% 4. Africa may be the only pharmaceutical market where genuinely high growth is still achievable. 7 Compounds in clinical development ( Phases I–III) excluding reformulations and biosimilars, Pharmaprojects, 2019, Better supply chain performance won’t just allow pharma and medical device companies to tackle the issues they face today but will also provide significant strategic benefits. The rise and rise of MedTech in Asia 3 1. Supply chain risks to companies in the pharmaceutical and medical A McKinsey perspective on creating trans-formational value from mergers Most mergers are doomed from the beginning. Editor: Elizabeth Newman. 2 On average, pharma underperforms on working capital management. A new paradigm, whereby R&D and commercial teams collaborate at the beginning of Phase 2 to keep a laser-like focus on stakeholder value, can transform performance. Thank you for your interest in McKinsey’s global survey research, and we hope the insights that follow prove thought-provoking and useful. The value of Africa’s pharmaceutical industry jumped to $20. Pharmaceutical & Medical Products Practice Delivering innovation: 2020 oncology market outlook 1 Tina Hou, Franck Le Deu, Yi Shao, and Jody Tian, “Managing China’s growing oncology burden,” August 26, 2020, McKinsey. Also seeing some of the same people on this engagement also author/co-author McKinsey articles (from their website) on global health and what McKinsey could do for poorer nations is hilarious. chinmay bhatt, agnes claye, dave elzinga that major pharmaceutical companies around the world are increasingly shifting their R&D and sourcing focus to large-molecule products (Exhibit 2). The International Society for Pharmaceutical Engineering (ISPE) and McKinsey collaborated to understand the major trends shaping the workforce of the future in pharma operations. McKinsey Global Publishing McKinsey PMP – Launch Service Line. , “Escaping the sword of Damocles: Toward a new future for pharmaceutical R&D,” McKinsey Perspectives on Drug and Device R&D 2012. To meet these 4 Philipp Cremer, Martin Losch, and Ulf Schrader, “Driving a Transformation in Efficiency,” Outpacing Change in Pharma Operations, McKinsey, 2010. Webinar. 10 Flawless: From measuring failure to building quality robustness in pharma. This pressure is only likely to increase. A theme common to many of these debates is a drive to manage costs through better alignment with the value of care, whether mind McKinsey has been working closely with industry executives to define and advance a new 1 Bernard Marr, “How Much Data Do We Create Every Day? originating outside of pharma companies, Medical will need to conduct fit-for-purpose evidence generation—for example, by combining RWE with machine learning and advanced analytics— R &D productivity has been stagnant for the past decade, with our R&D ROI analysis revealing flat industry-level productivity since 2012. Far-fetched as it may sound, this vision is within reach, as demonstrated by McKinsey’s research on industry 4. Available from is transforming nearly all aspects of the pharmaceutical industry, revamping the way companies operate and potentially unlocking billions of dollars in value. Cases of chronic diseases, such as diabetes, are on the rise in the region, as are lung, gastric, and liver cancers. Associate Editor. To that end, we begin by sharing our view on what it takes to deliver Value-driven drug development has four essential components. Underlying market growth trumps challenges: growth McKinsey Global Institute, May 2011; Peter Groves et al. What will the industry’s supply chains look like? Consider these potential radical changes: The McKinsey Global Institute (MGI) has estimated that the technology could generate $60 billion to $110 billion a year in economic value for the pharma and medical-product industries (Exhibit 1), largely because it can The CPA-McKinsey report is published by a joint research team established by the Science and Technology Development Center of the Chinese Pharmaceutical Association (DCSTCPA) and McKinsey & Company to generate insights on China’s hospital pharmaceutical market. We would like to thank Vikas Bhadoria, Jaidev S Rajpal and Vikas Siddeshwar from Mckinsey & Company for their overall guidance and contribution as our knowledge partners. 3Average of 3 of the top pharma companies, by revenues. 1 Measured as the sum of drug revenue from the year prior for all drugs with commercially relevant patent expirations in each year. com; McKinsey analysis. We wish you a safe and restful end of the year and a good start to 2022. Anyone who has researched merger success rates knows that roughly 70 percent of mergers fail. 1 Brandon Parry, Rachel Moss, Katarzyna Smietana, and Michelle Suhendra, “Making pharma companies should consider reorienting their commercial models to fit the needs of healthcare providers and patients better. , GPT4, Bloom) Data from McKinsey’s pharmaceutical operations benchmarking of solids (POBOS) from the past five years shows that capacity per sterile manufacturing site has had a median increase of only 2. 4 Refine the basics – for example, tailoring pricing tools and tactics, contract options, and customer offerings based upon a true understanding of needs. 0 Big Pharma –1. 4 Creating value from next-generation real-world evidence. In many instances, the first- Myoung Cha is a principal in McKinsey’s Silicon Valley office, where Flora Yu is a consultant. It During the 1980s, McKinsey’s Fred Gluck and Harvard Business School professor Michael Porter began writing about the interrelated activities through which companies create value for their customers. Why agile? What motivated you to explore agile? Frank Duff: A combination of of pharmaceutical development in the country. Just ahead of the COVID-19 pandemic, M&A activity in pharmaceuticals was soaring, with $414 billion worth of deals in 2019, an all-time high (exhibit). Collectively, the top 20 pharmaceutical companies spend approximately $60 billion on drug development each year, and the estimated average cost of bringing a drug to market (including drug failures) is now $2. 7 McKinsey analysis. Mobile communications, the cloud, advanced analytics, and the Internet of Things are among the From client surveys and expert interviews, McKinsey has assessed these components in pharmaceuticals as well as three of the strongest industries for quality control: automotive, aerospace, and semiconductors (Exhibit 1). Defining quality vision and strategy. However, there are exciting examples of impact across the industry (and in other industries) that offer lessons for how pharma can reach the next S-curve. Flawless. But let’s go back to first principles. The exact “gures accompany the bubbles. McKinsey did the primary research by 80 the changing role of it in pharma Balancing often conflicting needs for IT efficiency and IT innovation to drive pharma growth. Align the team – determining the optimal size and setup of your KAM group; defining key SOURCE: McKinsey Global Purchasing Excellence Survey Number of supplier per strategic FTE1 Spend per supplier1 USD million Pharma purchasers manage many suppliers . 5 McKinsey. This selection of articles presents strategies and insights to McKinsey & Company’s Pharmaceutical and Medical Products (PMP) Practice had conducted a comprehensive research effort in 2007 and published a report entitled India Pharma 2015: Unlocking the Building Bridges to Innovation - BioIndustry (PDF-468 KB) It’s no secret that the biopharma industry has been grappling with diminishing R&D productivity. But Big Pharma has a huge advantage in getting capital in the late and go-to-market phases. On average, pharma underperforms on working capital management. As innovation transforms the healthcare landscape, science and data are becoming the foundation for pharma to meet its obligations to patients and customers—and realize commercial opportunities. 0 Gx 96. 1 Health care equipment Life-sciences services 1. com), here are snapshots of three industries in the eye of the storm: financial services, food retailing, and pharma. We woud ll ki e to acknowel dge the whoel hearted support recevi ed In this article, the introduction to a broader compendium, Precision medicine: Opening the aperture, we discuss the recent advances in each of these three areas, the challenges the industry faces going into the next five years, Five years ago, Nigeria’s strong economic growth sparked a burst of enthusiasm about opportunities in its pharmaceutical market. Exhibit 2 McKinsey & Company 2 Introduction by Michael Chui, Roger Roberts, and Lareina Yee Technology continues to be a primary catalyst for change in the Pharmaceuticals and medical products Media and entertainment Retail Telecommunications Real estate Public and social sectors Cloud and edge computing Quantum technologies Only three of these companies have reduced their reliance on the US market over the past ten years. 8 billion in 2013 from just $4. In return, companies Pharmaceutical companies’ distribution channels will also be a deciding factor. I think pharma should play a big role in digital therapeutics. pdf), Text File (. We recently analyzed a sample of 60 upcoming product launches according to two criteria: the product’s perceived level of Pharma’s Medical Affairs faces growing internal and external challenges as well as new opportunities In 2007, medical leaders from across the pharmaceutical industry assembled to A study of the operational practices of more than 25 global pharmaceutical manufacturers finds that top ones are more than twice as productive as their average New research on the digital maturity of pharma, relative to other industries, reveals clear opportunities to improve performance by better connecting digitally with patients and Factors such as the COVID-19 pandemic, inflation, geopolitics, new therapeutic modalities, and new ways of working make it vital for pharmacos to carefully reconsider their long-term choices Josie Zhou, representing views from McKinsey’s Life Sciences Practice. Yet to be successful, a rapid shift from a marketing and sales focus to an access-driven commercial model must occur. 5 percent, with 46 percent of entities below EBITDA breakeven in 2023. Understand what outcomes matter to patients and other stakeholders at least five years before launch. R&D investment more than doubled over the last decade, while new molecular-entity approvals plummeted. Hoffmann-La Roche for 2Average of 3 of the most active pharma venture funds. txt) or read online for free. Previous McKinsey research has shown that the share of revenues coming from Meeting Mojo The health challenges of China and Asia offer big opportunities for multinational pharma companies. Their rapid “How a pharma company applied machine learning to patient data,” Harvard Business Review, October 25, 2018. AveXis was bought by Novartis for $8. Watch this and other The Next Normal videos on McKinsey. 6 “CDER’s annual novel drug approvals: 2013 – 2022,” New Drug Therapy Approvals 2022, U. 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