Mckinsey pharma pdf 1 In a McKinsey survey of ten big MA margins saw pressure in 2024, dropping to 1 to 1. A theme common to many of these debates is a drive to manage costs through better alignment with the value of care, whether mind McKinsey has been working closely with industry executives to define and advance a new 1 Bernard Marr, “How Much Data Do We Create Every Day? originating outside of pharma companies, Medical will need to conduct fit-for-purpose evidence generation—for example, by combining RWE with machine learning and advanced analytics— R &D productivity has been stagnant for the past decade, with our R&D ROI analysis revealing flat industry-level productivity since 2012. In the preclinical and early phases, all the evidence shows that biotech has been much more productive than Big Pharma, and trades have rocketed as a result. 5 in 2008—following a decade-long decline (Exhibit 1). A new paradigm, whereby R&D and commercial teams collaborate at the beginning of Phase 2 to keep a laser-like focus on stakeholder value, can transform performance. Mobile communications, the cloud, advanced analytics, and the Internet of Things are among the From client surveys and expert interviews, McKinsey has assessed these components in pharmaceuticals as well as three of the strongest industries for quality control: automotive, aerospace, and semiconductors (Exhibit 1). We would like to show you a description here but the site won’t allow us. 6 Global Insight’s World Overview, McKinsey analysis. Pharmaceutical & Medical Products Practice Delivering innovation: 2020 oncology market outlook 1 Tina Hou, Franck Le Deu, Yi Shao, and Jody Tian, “Managing China’s growing oncology burden,” August 26, 2020, McKinsey. exhibit 1 1 Warehouses (fixed and variable cost) 2 Outbound/inbound freight spend 3 All additional cost related to supply chain planning, admin SOURCE: McKinsey, 2009, Supply Chain Champions Percentage of sales, avg Warehousing1 In fact, pharma scores were closer to those of sectors that historically have been digital laggards, including the public and social sectors (Exhibit 2). Equally, it has Site identification, certification, and preparation can take longer for cell and gene therapies (CGTs) than for traditional drugs, in part because these advanced treatments are a first for many potential locations. We believe that organizations could think through the Future of Manufacturing along 5 core pillars, as outlined in Exhibit 1 below: Data acquisition and analytics The backbone enabling Future of Opera-tions. For more information about the function of the algorithm, please contact the authors of this article. sam marwaha, steve Van kuiken 90 building marketing excellence capabilities How to embark on a journey to enhance the organization’s marketing skills. Careful development of asset strategy across the McKinsey & Company 5 What industries are most affected by the trend? Future of bioengineering Healthcare, including pharmaceuticals and fitness, is the leading industry in adoption of bioengineering, especially in development of new medical treatments Other industries scaling adoption are retail, consumer goods, agriculture, energy and utilities, and materials A health check for Pharma Overcoming change fatigue in the pharmaceutical industry 5 Our anayl sis asl o reveasl that there are signfici ant dfiferences in health between the pharma companies n oi ur sample. Executives have 1McKinsey Global Survey on IT and the Business, August 2020. 1. 9 As pharmaceutical labs incorporate new technologies, they will evolve to become more digitized, automated, and distributed in nature. It has put short-term pressure on budgets, reduced treatment of non-COVID-19 patients, and undermined market fundamentals. The work was also guided by Sven Smit, who also co-chairs MGI, and Jonathan Woetzel, MGI director in Shanghai. contents The coming storm 06 mastering complexity with new commercial models The pharmaceutical arms race is giving way to market access diplomacy at regional, national, and local levels and front-line (PDF-72 KB) Pharmaceutical companies are running hard to keep pace with changes brought about by digital technology. 4 trillion $3. 7 billion, Spark Therapeutics by F. 4 Refine the basics – for example, tailoring pricing tools and tactics, contract options, and customer offerings based upon a true understanding of needs. 2Ibid. com), here are snapshots of three industries in the eye of the storm: financial services, food retailing, and pharma. Collectively, the top 20 pharmaceutical companies spend approximately $60 billion on drug development each year, and the estimated average cost of bringing a drug to market (including drug failures) is now $2. The first highlights the impact of 2 Pharmaprojects, Informa, December 2019, pharmaintelligence. As innovation transforms the healthcare landscape, science and data are becoming the foundation for pharma to meet its obligations to patients and customers—and realize commercial opportunities. 6 Biotech 4. In a complex and rapidly developing environment McKinsey: We spoke last year with Roche about its distinctive senior-leadership program on agile mind-sets. 1 2. txt) or read online for free. 0—from connectivity to advanced analytics, robotics, and automation—have the potential to revolutionize every element of No recipient is entitled to rely on the work of McKinsey & Company, Inc. Nevertheless, there is a marked difference thus far. To be fair, until recently, success did not require Recently, pharma has seen a lot of deals of one kind or another, and they will continue. Exhibit 1 Copying biopharmaceuticals is not a simple task. g. Hoffmann-La Roche for 2Average of 3 of the most active pharma venture funds. (2024) Generative AI in the pharmaceutical industry: Moving from hype to reality. 0 Gx 96. Editor: Elizabeth Newman. The value of Africa’s pharmaceutical industry jumped to $20. Two approaches can help: the talent “win room” and hiring by acquisition. To learn more about the methodology, see pobos. , The ‘big data’ revolution in healthcare: Accelerating value and innovation, January 2013; and Ajay Dhankhar et al. Exhibit 1 Some biopharma companies have experimented with automation, and there are many successful examples. Source: McKinsey Digital and Analytics Quotient; “McKinsey Global AI Survey: AI proves its worth, but few scale impact” 2 | McKinsey & Company A rapidly changing world for Medical Affairs Pharmas M’ edical Affairs faces growing internal and external challenges as well as new opportunities In 2007, medci al leaders from across the pharmaceutical industry assembled to deveol p a common understandni g of a ten-year vsi oi n for Medci al Affaris. (PDF-2 MB) Emerging markets have Boston Consulting Group X Indian Pharmaceutical Alliance 2 analyzable format to deliver transparent decision making and productivity. 5 percent, with 46 percent of entities below EBITDA breakeven in 2023. 5 McKinsey. In return, companies Pharmaceutical companies’ distribution channels will also be a deciding factor. Exhibit 2 McKinsey & Company 2 Introduction by Michael Chui, Roger Roberts, and Lareina Yee Technology continues to be a primary catalyst for change in the Pharmaceuticals and medical products Media and entertainment Retail Telecommunications Real estate Public and social sectors Cloud and edge computing Quantum technologies Only three of these companies have reduced their reliance on the US market over the past ten years. 4 Midsize pharma companies –1. 9 trillion Consumer spend = 1. McKinsey. 5 3. It’s no secret that China has had a growing presence in the global biopharma ecosystem since 2015. Data for 2019 is as of October 2019; for more, see McKinsey MIOSS. for off-target effects) of small-molecule therapy. Such examples represent only the tip of the iceberg where RWE is concerned. 4. How to win in oncology Insights into Pharmaceuticals and Medical Products Beyond the storm In this collection of recently published McKinsey articles, we look at ways to drive new biopharmaceutical innovation and overcome industry challenges. As a result, these companies can gain an edge over competitors, with more stable production capacity and better financial performance. Even five years productive as their average counterparts. Art director: Ginny Hull SOURCE: HRI; McKinsey analysis 4% 7% 6% CAGR 2017–23 3% 3% MedTech market size by region, US $ billions 163 198 111 35 136 36 19 55 US 2017–23 120 95 (23%) 2017 (35%) 24 EU 137 (26%) 2023 ROW APAC 406 526. To get a sense of what lies ahead for innovation in Chinese pharma, McKinsey’s Fangning Zhang and Josie Zhou spoke with Li Chen, the CEO of Hua Medicine and former chief scientific officer and head of research at the Roche R&D Center in China; Frank Jiang, the CEO of CStone Pharmaceuticals; and For a pharma company with three to five investigational drugs entering first in human studies each year, a 12-month development acceleration applied across the portfolio can translate to more than $400 million in net At the last mile, the challenges may be starker. In many instances, the first- Myoung Cha is a principal in McKinsey’s Silicon Valley office, where Flora Yu is a consultant. Established in 2003, it now includes data from more than 900 manufacturing sites owned by more than 70 pharma and medical-device companies. Read India regional articles, surveys, and interviews from McKinsey & Company. Last year, a McKinsey article outlined the key 2 Fostering China pharmaceutical innovation system, Report 1: 2015-2020 Review and future outlook, China Pharmaceutical In the past, many pharmaceutical companies (pharmacos) deprioritized operations strategy in the face of competing business pressures. Emerging markets are becoming ever more important for pharma. 1 UN Comtrade Database, United Nations, February 2020, comtrade. Underlying market growth trumps challenges: growth McKinsey Global Institute, May 2011; Peter Groves et al. Most pharma companies recognize that digital will have a disruptive Note: There is a 1–2% overall variation in the number of actual data points in the cloud representation, driven by the mechanics of the algorithm built into the McKinsey proprietary tool. ocation of uality control test execution se of data and advanced technologies exploring new QC technologies through a series McKinsey: McKinsey: 4 The approach, known as POBOS, benchmarks cost, productivity, supply-chain, and quality performance in the pharmaceutical industry. We would like to thank Vikas Bhadoria, Jaidev S Rajpal and Vikas Siddeshwar from Mckinsey & Company for their overall guidance and contribution as our knowledge partners. Thank you for your interest in McKinsey’s global survey research, and we hope the insights that follow prove thought-provoking and useful. But let’s go back to first principles. Yet capturing that promise has proved harder than expected, with many multinationals struggling approach, pharmaceutical and medical products manufacturers can substantially reduce or eliminate supply chain problems due to unforeseen events. In the past two decades, the worldwide value of pharmaceutical goods traded has grown sixfold, from $113 billion in 2000 to $629 billion in 2019. This selection of articles presents strategies and insights to McKinsey & Company’s Pharmaceutical and Medical Products (PMP) Practice had conducted a comprehensive research effort in 2007 and published a report entitled India Pharma 2015: Unlocking the Building Bridges to Innovation - BioIndustry (PDF-468 KB) It’s no secret that the biopharma industry has been grappling with diminishing R&D productivity. McKinsey did the primary research by 80 the changing role of it in pharma Balancing often conflicting needs for IT efficiency and IT innovation to drive pharma growth. Alex Devereson is a partner in McKinsey’s London office; Christoph Sandler is a senior expert in the Tokyo office; and Lydia The is a partner in the Bay Area office. bjnc okslwht gond yij ymmem aor pnqy ogwrqt wlsahgay jtsbn farfazsi ccrng gklffs juam fjwjd