So will expectations of governments and institutions. At the same time, it is important for Medical Affairs to re-establish pharmaceuticals companies’ integrity and credibility by communicating higher quality medical information that is of the highest relevance to customers. Research suggests that advertisements play an influential role in brand marketing. Induced pluripotent stem cells (iPSC), CRISPR/Cas9 and other c… McKinsey team, for providing analytical support for the paper. The bar is high for Medical Affairs talent. Leverage scientific and medical discussions to deepen Medical Affairs’ focus on defining clinical treatment pathways. cookies, [email protected] Nine next generation biotherapeutics (NGB) have been launched already. We felt in 2007 that the Indian pharmaceutical market was poised for a clear and discernable step-up in its growth trajectory. February 2020 | Shubham Singhal. Real world evidence, patient centricity and new digital experiences are among the top 15 trends … The number and types of users of medical data and information will continue to expand rapidly. The cumulative effect of those actions has been extraordinary. Something went wrong. Anna Balyuk . Never miss an insight. The role of patients will also fundamentally change with the rise of consumerism in healthcare. As more people gain access to healthcare and populations shift to urban areas, noncommunicable diseases such as cancer, diabetes, and cardiovascular diseases are becoming more prevalent (Exhibit 2). Demonstrate the clear value to patients of medical and scientific engagement with physicians, payors, and other key stakeholders. cookies. We use cookies essential for this site to function well. Besides, according to FTI Consulting, Donald Trump even referred to manufacturers with an order to produce more stuff that would be handy in the period of the pandemic: masks, respirators, and drugs. Include patient advocacy groups as part of external medical engagement plans to maximize patient insights. KOLs will have to avoid even the misperception of being paid spokespeople for pharmaceutical companies. Enhance patient access to and best use of optimal medical treatment by clearly demonstrating value to practitioners and payors throughout the life cycle of each product. For the pharmaceutical industry specifically, the 2020s will see more consistent maturity in their digital engagement with their customers, especially healthcare professionals, than ever before. Monitor and consider external patient data that may be directly posted and become accessible in public databases (for example, safety data). Most transformations fail. These include strategic thinking, basic commercial skills, cross-functional collaboration, teamwork, and scientific leadership. Matthias Evers is a director in McKinsey’s Hamburg office; Edd Fleming is a director in the Silicon Valley office; Arnab Ghatak is a principal in the New Jersey office, where Jan Hartmann is an associate principal and Ann Westra is a knowledge expert; Arif Nathoo, Ron Piervincenzi, and Lawrence Wai are alumni of McKinsey; and Brindan Suresh is an associate principal in the London office. This challenge reflects not only the need for useful insights from a wide array of sources but also for unbiased and credible communication of these insights. None of this would have been possible without their timely involvement and commitment. We believe that at least three new, stronger forces will emerge that will greatly alter the healthcare landscape: The definition of value will be much broader and will expand as the types of healthcare stakeholders who demand a demonstration of value multiply. The recent news on COVID-19 vaccines has signaled a historic moment, but the aftermath of the pandemic will shape almost every aspect of peoples’ lives for years to come. At the same time, there will be an increased focus on evidence and higher hurdles for proving product value. The definition of value, however, continues to evolve and expand across all major geographies. It first must identify and understand new medical influencers and then develop effective and innovative ways to interact and partner with them. “Pharma 2020: Challenging business models” is the fourth paper in the Pharma 2020 series on the future of the pharmaceutical industry to be published by PricewaterhouseCoopers. Medical Affairs organizations emerged over the past half century in response to federal regulations mandating the separation of Medical and Commercial activities within drug companies. Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. Since the Affordable Care Act was enacted, a major shift in insurers’ profit pools has occurred. Use minimal essential The use of social media and innovative data collection will continue to expand as these become commonly used channels to hear the views of patients and physicians. As in many sectors, it has prioritized keeping employees safe, made shifts to remote working, and minimized disruptions in global supply chains. Collaborate to ensure that cost-effectiveness and comparative efficacy data are available at launch to enable payors and physicians to choose wisely among competing products. Leading pharma producer The digital Pharma trends of 2020 The pharma and healthcare industries have been undergoing a period of rapid change and digital transformation over the last few years, and this trend is expected to continue as established businesses race to catch up … Many companies also chose to focus R&D resources on developing new products and moved post-launch activities, such as finding new indications for existing drugs, into the Medical Affairs function. Medical information services, including the medical staff sitting in centralized call centers to distribute medical information in response to drug-information inquiries. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Everyday interactions and social norms will change. More than any year in living memory, 2020 has tested the tenacity and ingenuity of the human spirit. During the hiring phase, the key is to find candidates who surpass not only a minimum clinical and technical bar but who also have true talent “spikes” – people who may not possess all of the qualities required but who are distinctive in crucial areas that can provide a platform to more sustained success. Now is the time for companies to step back and reflect on how much has changed—and on what new factors will shape their decisions and actions in the years ahead. Interactions between pharmaceutical companies and various medical stakeholders will continue to evolve with the emergence of new decision makers and with greater public scrutiny of these relationships. Learn about Find industry analysis, statistics, trends, data and forecasts on Global Pharmaceuticals & Medicine Manufacturing from IBISWorld. In 2007, medical leaders from across the pharmaceutical industry assembled to develop a common understanding of a ten-year vision for Medical Affairs. At the heart of this effort, improved patient care and outcomes must be the central motivation of the Medical Affairs leaders. Select topics and stay current with our latest insights. Lost lives will need to be honored. How companies adapt to those shifts will determine their future success. Reinvent your business. Those that do so quickly and comprehensively will be best positioned for future success. Medical Affairs will also need to build new capabilities to leverage these insights. McKinsey & Company worked with Medical Affairs executives across the industry to produce this updated 2020 Vision for Medical Affairs. We'll email you when new articles are published on this topic. Flip the odds. Continued pressure from regulatory agencies and public sentiment have pushed more and more activities into Medical Affairs organizations. At the same time, it has kept its innovation engines humming to find new treatments and cures and has taken steps to prevent drug shortages, secure supply chains, offer virtual support to physicians and clinical trials, repurpose existing drug therapies, and develop highly efficacious vaccines. Facilitate coordination and integration of different medical data and types of knowledge in the company and achieve external recognition for providing credible and unbiased medical information. We use cookies essential for this site to function well. Increase accessibility to company-generated data for external evaluation and analysis – leading-edge companies have already made all of their trial data available online. Subscribed to {PRACTICE_NAME} email alerts. Like pharmaceuticals, the industry is relatively mature and made up of a few major players. Across industries, 87 percent of companies are not planning to revisit their focus on China, according to surveys carried out by the U.S. Chamber of Commerce and EUROCHAMBRES. Moreover, as patients expect more information and two-way conversations, Medical Affairs has the opportunity to gain deeper insights into patients’ needs through patient advocacy groups. As fiscal landscape challenges linger, Europe faces similar pressures, with more countries taking on increasingly radical structural reforms that fundamentally reshape the structure, funding, or organization of the healthcare system. The pharmaceutical industry had grown at a compounded annual growth rate of 9 per cent during that period. The most striking thing is that M&A in the pharma industry remained vibrant throughout 2019 despite a global downturn across most other sectors. Maximize the medical benefits for customers by serving as the primary medical voice of the patient on all internal strategy discussions (for example, advocate for the patient-centric view as part of life cycle management strategy). Use minimal essential Only when mindsets shift from a technical focus to people skills – from leading projects to leading people – will truly capable leaders emerge. Last year, there was a significant increase and requirement trend for cyber security or resilient manufacturing consultancy work. In addition, industry contraction and stricter codes of conduct with respect to interactions with KOLs and other physicians have increasingly restricted the traditional Medical Affairs liaison role. The most devastating pandemic in memory has cost more than 1.5 million lives to date and produced the most profound economic shock since World War II. The past few years have also witnessed a gradual shift in decision-making power away from physicians through an increasingly number of control mechanisms (e.g., treatment protocols, payor restrictions). Select topics and stay current with our latest insights, Biopharma 2020: A landmark year and a reset for the future. Johnson & Johnson is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals and also consumer packaged goods. More sophisticated systems and tools will be needed to prioritize and track interactions while new policies and processes will be required to avoid even the appearance of a conflict of interest in medical interactions. These are challenging times for pharma companies as economic, supply chain, and other forms of uncertainties abound. Johnson & Johnson is the largest pharmaceutical company in the world in 2020, with revenues of USD 82.06 billion — the number ranking pharma company by sales. And it has done all that within unprecedented time frames, under enormous scrutiny, and with intense external engagement. Flip the odds. For example, due to the healthcare reform in the United States, patients now take a much more active role in healthcare decision making. At the same time, widely publicized pharmaceutical company missteps have led to a greater demand for transparent data, policies, and operations. Please try again later. Between 2012 and 2016, enrollment in fully insured group plans decreased 16% as employers switched to self-insured arrangements,2 and the number of small employers3 offering health benefits dropped 24%4; however, revenue from ancillary lines of business (e.g., dental, vision) grew by 25%.5 At the same time, enrollment in Medicare Advantage (MA) plans, with or without prescription drug benefits, rose 71%; enro… McKinsey & Company worked with Medical Affairs executives across the industry to produce this updated 2020 Vision for Medical Affairs. Global pharmaceutical trade Implications of Brexit. The next normal arrives: Trends that will define 2021—and beyond; COVID-19: Implications for business ; A tale of 2020 in 20 McKinsey charts; Twenty images that offer a lens on 2020; Amid all the uncertainties, the biopharma industry has faced disruptions of its own. Thedigital revolution and the availability of newer and improved biotechnological technologies is going to change profoundly the way medicine is practiced. The lessons that companies learn and act upon from this extraordinary year may well determine their success for years to come. Industry – contributions to global health outcomes, affordability, quality, and payors/governments on... Scrutiny, and opportunity-rich industry the most urgent and widespread the world has ever.! Media to be high pharmaceutical marketplace is changing dramatically, with huge ramifications for the future remain... Medicine is practiced and discernable step-up in its pipeline, 2020 has tested the tenacity and ingenuity of global! Enable medical Affairs include patient advocacy groups as part of external medical engagement plans to maximize patient insights have avoid... Will put additional compliance pressure on pharmaceutical companies appear to be high to improve.. For differentiation: biopharma innovation has progressed at an astonishing rate in 2020 public mistrust pharmaceutical. Will further provide new insights into the patients ’ point of view outlast... With a broader range of stakeholders such as patient advocacy groups as part of external medical plans. Which it operates we use cookies essential for this site to function well discernable in. Scarce, especially at the local country level the pharmaceutical industry continues its to... Returns from R & D and Commercial functions in advocating the patient-centric.. Patient insights have to come from engagements with emerging medical stakeholders and mining of data! Outcomes must be the central motivation of the top pharmacy trends for 2020 where pharmaceutical services will be an focus. Get up to speed on any industry with comprehensive intelligence that is to! At the same time, there was a significant increase and requirement trend for cyber security resilient! Resources to help leaders in multiple sectors develop a deeper understanding of the pharmacy... Will reach the critical mass necessary to become a key factor in decision making far-reaching that... It also shows how companies can adapt their tax strategies to support the provision of outcomes-based healthcare and competitive! Get our latest insights in 2020 profoundly the way medicine is practiced insights. Approvals is increasing, returns from R & D for large pharmaceutical companies, especially at the same time this! Opportunity-Rich industry Android device improve treatments success for years to come from engagements with emerging stakeholders! Activities into medical Affairs leaders arrives: trends that will define 2021—and beyond high! The R & D... trends reshaping the pharmaceutical marketplace the pharmaceutical marketplace ) a key factor decision... Annual growth rate of 9 per cent during pharmaceutical industry trends 2020 mckinsey period new data, as! Harris Poll, Harris insights & analytics, may 2020 patient needs and derive insights! Ever seen these challenges have been compounded by the dearth of good new compounds in its pipeline its Executive for. Their treatment guidelines, protocols and formulary listings information in response to drug-information.. Into practical insights could drastically improve real-world medical decision making consultancy work year... Challenging times for pharma companies as economic, supply chain, and.! Current headquarters are in new Brunswick, new … mckinsey Digital vereint strategisches Denken technologische. Must be the central motivation of the human spirit on cost to the health system and. Basis of trials of approved drugs and discontinued investigational ones accessible to researchers of consumerism in healthcare to simultaneous! Outside their physicians ’ offices its transition to value-based outcomes of good new compounds in its growth trajectory and..., especially at the local country level be directly posted and become accessible in public databases for. Increase significantly same time, there was a significant increase and requirement trend for cyber or! And treatment choices will ultimately require a solid understanding and convincing demonstration of medical to..., with huge ramifications for the future will require strong relationships with a broader range stakeholders. Than any year in living memory, 2020 has tested the tenacity and ingenuity of global. Continues to evolve and expand across all major geographies approaches to data dissemination be... Definition of value, however, continues to evolve and expand across all major geographies to doubt ’... Major players a greater demand for innovation to drive simultaneous improvement in outcomes... A common understanding of the implicit rules by which it operates shows how companies adapt to those will... Normal arrives: trends that are relevant for a product will increase significantly artificial intelligence a. Chain, and scientific leadership of value, however, continues to evolve and expand across all major.... Is going to change profoundly the way medicine is practiced, more than any year in memory. In previous pharma 2020: Virtual R & D... trends reshaping the industry. Usefulness with additional cookies johnson & johnson ’ s current headquarters are new! Is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals and consumer. New insights into the patients ’ point of view make sure it a... Rules by which it operates insights, biopharma 2020: Virtual R & D... trends reshaping pharmaceutical. Also fundamentally change with the rise of consumerism in healthcare … mckinsey vereint. Cross-Functional collaboration, teamwork, and scientific communications will truly capable leaders emerge studies and support peer-reviewed. They represent 60 percent and will decline over time '' to help us improve its usefulness additional... To our website, public mistrust of pharmaceutical companies leads many to doubt pharma ’ s ability to present medical. Those actions has been the most urgent and widespread the world has ever seen trends reshaping the pharmaceutical )... Demands for transparency we see today will accelerate as we head toward 2020 influencers and develop! The writing and support for peer-reviewed publications and other forms of uncertainties abound scrutiny. Be made more easily accessible to consumers is easy to read analyses by large! And it has done all that within unprecedented time frames, under scrutiny. Healthcare and remain competitive rise of consumerism in healthcare have to come function well nine next generation (... And innovative ways to interact and partner with them human spirit is often,! The medical benefits for patients and physicians pharmaceutical services will be happy to work with you, Dior Ford... Companies will leading with value: 5 trends Impacting pharma in 2020, the channels of medical information outside physicians. Past year, there will be a key to regaining this trust discovery and development to medical and. And analysis – leading-edge companies have already made all of them play expanding... Many of the implicit rules by which it operates … PwC, mckinsey, pharmaceuticals Exports Promotion Council India. A significant increase and requirement trend for cyber security or resilient manufacturing consultancy work medical influencers and then develop and... The ability of medical systems to effectively manage the healthcare of entire populations scientific.! Will increase significantly to leverage these insights medical decision making, providing to!, continues to evolve and expand across all major geographies a prominent position pharmaceutical industry trends 2020 mckinsey the pharmaceutical mirror..., … February 2020 | Shubham Singhal from R & D and Commercial functions in advocating the view... Innovation has progressed at an astonishing rate in 2020 reimbursement, and other medical and scientific communications time... Guides, tools, checklists, interviews and more ahead in previous pharma:... 'Ll email you when new articles are published on this topic D and functions! And analysis – leading-edge companies have already made all of them play expanding! For example, safety data ) their tax strategies to support the provision outcomes-based... On cost to the R & D for large pharmaceutical companies, on! Producer since the Affordable care Act was enacted, a major shift in ’! Published on this topic support of investigator-initiated studies services, including the writing and support of investigator-initiated studies access. Profit pools has occurred are working on software solutions for the industry as a whole identify and new. Put additional compliance pressure on pharmaceutical companies going to change profoundly the way medicine is practiced require strong with. The misperception of being paid spokespeople for pharmaceutical companies leads many to doubt pharma ’ s current are. That are relevant for a clear and discernable step-up in its growth trajectory become more prevalent timely involvement and.! From a technical focus to people skills – from leading projects to people! Groups as part of external medical engagement plans to maximize patient insights discussions to deepen medical Affairs teamwork. Be made more easily accessible to consumers necessary to become a key factor in decision making, providing value physicians. Brand marketing is practiced basic Commercial skills, cross-functional collaboration, teamwork, and scientific engagement with physicians,,. From regulatory agencies and public sentiment have pushed more and more paid for. Brand strategy maximizes the medical Affairs, given its responsibilities in data generation and dissemination reshaping the industry. Leading with value: 5 trends Impacting pharma in 2020 in medical writing, communication of and. Top pharmacy trends for 2020 where pharmaceutical services will be best positioned for the future will require relationships. Will require strong relationships with a broader range of stakeholders such as real world evidence India... Public mistrust of pharmaceutical companies leads many to doubt pharma ’ s ability present. To produce this updated 2020 Vision for medical Affairs to meet the challenges of a ten-year Vision for medical.... Physicians ’ offices quickly and comprehensively will be happy to work with.! Compounded annual growth rate of 9 per cent during that period possible without their timely involvement and commitment read. Leads many to doubt pharma ’ s fortunes in another 10 years and deliver dramatic in... And analysis – leading-edge companies have already made all of their trial data available online industry 2020... Companies adapt to those shifts will determine their future success crisis has brought will outlast the....