Pharmaceutical companies must work in digital condition 2

Pharmaceutical companies must work in digital condition

Research by 120 executives (PDF) of the world's largest pharmaceutical companies predicts an increase in the global healthcare market by 10 percent by 2030. Strategy and media report that the market will grow from $ 10.6 trillion in 2018 to $ 11 trillion in $ 20 trillion.

As the share of population with access to healthcare grows, Strategy + expects that spending per patient will be reduced by 27.5 percent. This means that operating margins in the pharmaceutical industry could fall significantly from the current 25 percent.

Compared to 2018, areas of diagnostics (plus 524 percent), prevention (plus 244 percent) and digital health (plus 205 percent) are expected to grow by 2030. On the other hand, the share of health services in total health expenditure will be reduced by almost 16 percent. This represents a drop of about $ 1.2 trillion by 2030.

The uncertain times are approaching

"As part of our research, health managers expect unsafe times for their current business model," says Thomas Solbach, research author. "Traditional pharmaceutical companies or need to become much more effective in maintaining their margins, or selectively invest in growth areas such as diagnostics, prevention and digital healthcare solutions."

"For pharmaceutical companies in Switzerland, these challenges are also an opportunity," says Dominik Hotz, head of the healthcare industry at PwC Switzerland. "Traditional players, with their advancement in medical expertise and the commercialization of medical devices, need to find completely new ways to overcome decades of development and urgently build new digital skills to secure their market share."

How does pharmaceutical computing change, explains Vincent Turgis, CIO pharmaceutical company Ferring, in conversation with editors. You can read it here.