New Science expected to drive 54 percent of industry revenue through 2022, increase likelihood of regulatory approval of a new treatment, and raise the standard of patient care
NEW YORK; April 4, 2019 – The adoption of a unique combination of the best in science and health technology such as genomics, biomarkers and companion technologies are expected to be the biopharmaceutical industry’s new growth machine, according to new research from Accenture (NYSE: ACN).
This ‘New Science’ is filling an unmet need to advance the standard of care, and Accenture research found that companies that are leading in New Science are investing six to seven times as much money — US$250 million annually or more — in digital, data and genomics than their peers to develop more precise treatments and interventions that improve patient outcomes.
shares that New Science combines science plus technology to equal
more targeted and effective treatments for patients
“The biopharmaceutical industry is at an inflection point where traditional business models are being challenged by declining drug pipeline, pipeline replacement ratios, and the amount of time a product retains its market leadership,” said Stuart Henderson, senior managing director and global lead of the Accenture Life Sciences practice. “This is weakening investor confidence in the industry’s future earnings, indicating it is facing compressive disruption where a series of innovations, macroeconomic factors and other changes combine to squeeze profits over a decade or more. The good news is there is an exciting new growth engine where science is combining with novel ways of using technology to discover, develop and deliver much more targeted and effective treatments. We are calling this emerging category New Science.”
The New Science Growth Machine
Accenture’s research shows that companies leading in New Science are escaping the forces of compressive disruption by building the capabilities for exceptional growth. New Science:
- Solves for an unmet need through a new mechanism, modality or health technology (e.g., genomics, biomarkers, companion technology) as documented or approved by a regulatory or monitoring agency;
- Often requires a new technology companion such as a device or a diagnostic for development or treatment and/or;
- Could be a stand-alone technology, such as a mobile diagnostic.
“While New Science can carry a higher price tag than traditional medicines, our research shows that many regulatory bodies recognize the profound impact these more specialized treatments have in improving the standard of care for patients,” Henderson said. “As a result, they’re changing their approval process, as well as applying technology and process improvements to update their guidance to biopharma companies on how to run clinical trials and improve the patient experience.”
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions — underpinned by the world’s largest delivery network — Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 477,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
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