Health

The changing biopharma risk equation

June 03, 2016

Global

June 03, 2016

Global
Becca Lipman

Editor, EMEA

Becca is currently a supporting editor and writer for The Economist Intelligence Unit's thought leadership division in the Americas and EMEA. Her primary focus is on healthcare policy and financial market trends. She has also recently developed research programmes that analyse themes in infrastructure and smart cities, as well as C-suite perspectives on talent strategy, small business and IT development. 
 
Before joining the EIU in New York, and later in London, Becca worked as senior editor at Wall Street & Technology where she reported on IT advances in capital markets. She previously held posts as lead editor for a US stock brokerage. Becca earned her bachelor’s degree in both economics and environmental studies from New York University.

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As pharma companies expand, they are looking more and more to biologics for their next potential blockbusters.

However, this class of product—ranging from well-established large-molecule drugs to truly novel therapies—poses major challenges because of their scientific complexity and sophisticated development requirements. Furthermore, expanding the drug pipeline isn’t the only growth strategy most companies are pursuing: They are also planning to expand geographically and expect to face various risks doing so, including unfamiliar regulatory environments, shifts in pricing and customers’ ability to pay.

All this means that risk management is rising in pharma executives’ agendas. To manage risks, companies are developing strategies that involve both internal capabilities and outsourcing.

“Managing the changing biopharma risk equation” is an Economist Intelligence Unit (EIU) report sponsored by Merck. This paper explores in detail global pharmaceutical companies’ growth strategies and their plans for managing the associated risks. It draws on a multinational survey conducted in March 2016 of 254 pharmaceutical executives. The respondents represent a range of companies that are currently involved in or planning to engage in biopharmaceutical development. 

The report includes insights from range of pharmaceutical development experts. The EIU would like to thank the following interviewees for their input:

  • Steve Bates, chief executive, BioIndustry Association (UK)
  • Managing the changing biopharma risk equation (16029)
  • Andrew Baum, managing director of equity research, Citi
  • Ralph Marcello, principal, Deloitte Consulting’s life sciences consulting practice
  • Tom Ransohoff, vice-president and principal consultant, BioProcess Technology Consultants

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