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