Employing more than 40,000 people, the Life Science industry in Greater Copenhagen is a world leader in R&D spending, clinical testing and drug development. As a country, Denmark has one of the largest commercial drug development pipelines in Europe measured in drugs per inhabitant, while we are observing a boom in the development of new and ground breaking Medical Devices/IVD’s. Now, the question is, what lies ahead?
In the recently conducted annual Albright Life Sciences Executive Survey 2018, more than 100 Danish Life Science Executives have shared their thoughts, insights and evaluations on industry trends, growth prospects and barriers. In this report, you will gain insight into what executives from the Medical Devices/IVD, Pharma/Biotech and other related Life Science sectors have found to be the most likely drivers of growth, which growth strategies they expect to employ, as well as what they see as the biggest threats to future growth.
Answers from the Life Science Executive Survey generally show high confidence towards future revenue growth. 83% of respondents are either “very confident” or “confident” when it comes to revenue growth prospects.
Within the Medical Devices/IVD industry, more than 87% of the surveyed executives express that they are either “very confident” (54,2%) or “confident” (33,3%) of their organisation’s prospects for growth over the next three years. Within the Pharma/Biopharma/Biotech industry, 40% of the surveyed executives express that they are “very confident” and 44% indicate that they are “confident” of their organisation’s prospects for growth. Executives from the suppliers to the Life Science industry express a level of confidence which is comparable to that within the Pharma/Biotech industry.
We have established that Life Science executives are very positive in regard to growth prospects. But what will drive this growth?
According to survey respondents, the two most important growth drivers looking at the Life Science industry at large are: (1) Strategic alliances and partnerships (74% are either confident or very confident) and (2) Advanced data analytics (67% are either confident or very confident). The latter is in fact also anticipated to be one of the key drivers for future growth for firms who act as suppliers to the Life Science industry, along with the introduction of disruptive technologies (100% are either confident or very confident).
In the eyes of executives from the Medical Devices/IVD industry, the two factors, which are seen as most likely to drive growth are: (1) Digitization of products and services (83% are either confident or very confident) and (2) Strategic alliances and partnerships (71% are either confident or very confident).
In the Pharma/Biotech/Biopharma industry, the factor which executives believe is most likely to drive growth is Strategic alliances and partnerships (73% are either confident or very confident). Advanced data analytics and data-driven improved insights (62% are either confident or very confident) is also high up on the list of expected growth drivers in this industry.
A majority of the factors, which – according to surveyed life science executives – are most likely to drive future growth relate to technological developments. Technological and digital innovations are currently redefining the Life Science Industry and this tendency is clearly reflected in the survey results. The new and constantly improving technologies offer an ocean of new possibilities that can benefit firms as well as consumers.
Particularly within Medical Devices/IVD, technological innovations seem to be disrupting the industry, dissolving the lines between medicine and technology, and emphasizing the importance of new product and service technologies, which will also benefit the life science industry at large.
“It is evident that change is on the agenda in all corners of the Life Science and Healthcare industry and that even greater change lies ahead. The introduction of service brands, consumerism, digital technologies and changing demographics will push the industry to think in new paradigms and move faster and more agile than ever before.“
- Henrik Brabrand, Albright Life Sciences A/S
So, what keeps the Danish Life Science Executives up at night?
Although industry growth prospects are predominately positive, there are also significant threats that may act as barriers to future growth in Life Sciences.
In fact, a large fraction of the surveyed Life Science executives view: (1) Increasing pricing pressure (70% are either confident or very confident), (2) Insufficient access to talent (59% are either confident or very confident) and (3) Over-regulation (46% are either confident or very confident) as possible threats to their organisation’s growth prospects.
71% of respondents within Medical Devices/IVD express significant concern of their company not being able to access the required talent, while this is the case for 55% of executives working in Pharma/Biopharma/Biotech.
To mitigate the risk of insufficient access to talent, Life Science companies must adjust to changing market conditions and make themselves increasingly attractive towards future employees and consequently dedicate resources to attracting and developing their talent pool.
”The identification and closing of unprecedented capability gaps within Life Science organisations’ will gain focus in parallel with being disrupted by the acceleration of AI, cognitive technologies and automation, shortening production times and increasing process efficiencies benefiting patients and clinical trial productivity.”
- Henrik Brabrand, CEO – Albright Life Sciences A/S
The conducted Life Science Executive survey has yielded important insights into one of Denmark’s most important industries. While the survey results indicate positive prospects for growth, it is also clear that companies within the Life Science Industry will have to navigate in an increasingly more complex marketplace and adjust to a rapidly changing environment in the coming years.
Life Science companies can benefit from new technologies and strategic partnerships, which can increase innovation and ease the product development process. Furthermore, the increased insights that data, as well as the right alliances can provide, may be instrumental in mitigating threats emerging from an increasingly more digitalized and challenging environment.
In these years rapid change is a fact of business – not least in the Life Scien