CEO Survey Finds Technology, Innovation Shaping Life-Sciences Industry

Pharmaceuticals and life-sciences CEOs believe that technology is transforming the sector and they’re using strength in innovation to make the most of it. They’re also focused on regulation and integrity. Facing the talent challenge is a key priority, particularly with demographics and shifts in wealth radically reshaping the sector, according to a global survey of life-sciences CEOs conducted by PwC. 

 

Pharmaceuticals and life-sciences CEOs are more convinced than their peers that technological advances will transform their businesses in the next five years. They’re more conscious than other CEOs of the huge role demographics will play. Of the surveyed chief executives, 72 percent see it as a transformative trend, compared with 60 percent across the sample. More are also expecting a big impact from global shifts in economic power. Only around a third of sector CEOs are concerned that the speed of technological change may negatively impact growth, compared with nearly half of CEOs across the overall sample.

 

Innovation is a top priority and protecting intellectual property is a concern. Sector CEOs are already transforming their R&D function to cope with transformation – 38 percent say they have completed or have in progress a program to change their R&D and innovation strategies, more than across the sample as a whole. And the same number believe that their R&D departments are well-prepared for the challenge.

 

They’re not as confident about their ability to benefit from their discoveries, though. Nearly 64 percent of pharmaceuticals and life sciences CEOs are somewhat or extremely concerned that an inability to protect intellectual property will hamper growth, far more than across the sample as a whole.

 

Other findings include: 

 

Cyber-security not a huge issue: A surprising 57 percent of pharmaceuticals and life sciences CEOs are not concerned that cyber threats including lack of data security could threaten growth, despite a boom in big data and data analytics. 

 

Regulation is not all bad: The pharmaceuticals and life-sciences industry is highly regulated, and nearly half of CEOs (47 percent) are extremely concerned that over-regulation could put the brakes on growth. That said, a full 72 percent believe that their production and/or service delivery quality standards improved over the past 12 months as a result of regulation.

 

Integrity is a big issue: The industry is taking safety seriously; more CEOs strongly agree that it is important to them to ensure the integrity of their supply chain (76 percent vs. 58 percent overall).