Deloitte’s Report of Pharmaceutical Innovation: A Review
In its Measuring the Return from Pharmaceutical and Innovation series, Deloitte reported on its first nine years with a focused examination of the top 12 pharmaceutical companies. Its analysis uncovered declining trends in R&D returns throughout the biopharma industry. In the past year, Deloitte, found that a further slight decrease in returns of 0.1 percent is indicative of the past decade’s decline: an average of 0.83 percent per year. With peak sales “per pipeline asset” falling below $400 million for the first time,” some big pharma companies will be considering big changes in order to adapt business models to “drive innovation.”
Focus on Personalized Biologics
With a major focus on personalized biologics, the pharmaceutical industry will need to revamp some operations in order to secure a profitably return on its research and development investments. Deloitte’s report evaluates the decline of these returns from an innovation point of view, but also hints at the industry’s ability to transition to new and more innovative business models that may secure profit while driving innovation. For example, reliance on the clinical trial outsourcing market is allowing companies to cut some in-house costs. Emerging biopharma are able to work with other entities to conduct their trials even though they don’t have the infrastructure–or the desire to invest in infrastructure–by tapping into this outsourcing resource.
What Does Deloitte’s Report Mean for Human Capital?
Innovation and adaptation are key drivers for the biopharma field, but slight reductions in ROIs are forcing many companies to find new solutions for R&D. As a niche recruitment specialist, Key Corporate Services helps biotech and pharmaceutical companies staff their key teams, but also consults with them to create new strategies for achieving their business goals and helping them adapt to industry changes associated with their human capital.
About Key Corporate Services
Key Corporate Services helps employers and executive candidates across the nation to find each other in the following industries: industrial chemicals, pharma & biotech, food ingredients, finance and accounting, manufacturing and engineering.