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
Originally Published by Accenture.
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.
“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.
“New Science is already a huge driver of growth in oncology, but it is also expected to drive exceptional sales growth across multiple other therapeutic areas such as immunology and dermatology, and it exists beyond personalized or precision medicine,” added Henderson.
Contrary to conventional wisdom, the research also found that by adopting a New Science approach, a company is up to 50 percent more likely to obtain Probability of Technical and Regulatory (PTRS). PTRS is often used to approximate the potential risk of pre-market factors, ranging from likelihood of asset failure in clinal trials to likelihood of regulatory approval of a new drug. This indicates that New Science is more likely to reach and receive regulatory approval.
“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.”