The biopharma and healthcare industry across the globe are facing immense challenges for the wrath of the COVID-19 pandemic. With a decrease in consumer affordability and significant price pressure of companies, it is becoming quite a challenge for pharma and healthcare companies to meet their sales target and increase revenue generation.
According to a report, over 30% of health patients in the United States are not consuming prescribed doses of medicine due to the rising cost. Accenture has come up with a strategic plan that mentions the need to improve the research and development capabilities of organizations to tackle the global issue.
The research mentions, “The productivity problem hinges on the rising ratio of R&D spend per each new treatment approved, which has increased at 5% per NME and 7% per approval annually over the last ten years.”
Accenture claims that an increase in investment for research and development can drastically cut down costs of bringing discoveries from billions to millions. Deployment of better analytics and cutting-edge technologies in research and development can significantly boost innovation and productivity.
Accenture suggests pharmaceutical companies put more emphasis on three different prospects, namely New Science portfolio, digital and data-led research, and faster, smarter development, in order to bring a change in the situation.
The use of artificial intelligence solutions can help reduce the research cost by targeting validation, lead optimization, and identification. It would also play a vital role in cutting down costs due to failures due to a higher Probability of technical and regulatory success (PTRS).
Companies can save over $1.2 billion for every successful medicine and also generate additional revenue of up to $450 million after the adoption of Accenture’s business strategy. Modernizing the R&D process of pharmaceutical and healthcare companies can help them get out of this profitability crunch caused by the COVID-19 pandemic.