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Life sciences companies are at risk of being marginalized by technology companies and new entrants, according to a new EY report.
Life sciences companies are at risk of being marginalized by technology companies and new entrants, according to a new EY report. Progressions 2018 Life Sciences 4.0: Securing value through data-driven platforms. The report states that more than 75% of life sciences organizations currently included in the Fortune 500 are at risk of falling out of this ranking by 2023, if they don't look beyond novel drugs and devices and create new business models to also provide data-driven health services that are more convenient and consumer-focused. Life sciences companies can no longer rely exclusively on product-centric innovations, which face diminishing returns as health systems globally face cost constraints. The number of drugs achieving at least 50% of analysts' peak sales forecasts is falling as reimbursement pressures increase, according to the report. Additionally, technology companies are increasingly investing in evolving consumer, physician and payer needs with their own offerings, moving from cloud-based data storage and fitness and sleep tracking into disease management services, a historic core life sciences offering. According to the report, of the US health patents filed by major technology players since 2013, three of the largest technology companies alone have filed more than 300 health care patents, representing a 38% increase in the number of health-related patents filed by these companies every two years. For more on the EY report, visit https://go.ey.com/2IiWNqO