Do you know what’s happening in life sciences lately? Here’s a glimpse into the world of innovation life sciences companies are a part of:
Mini-microscopes that capture brain neurons firing in real time, robotic limb inserts that can prevent and protect you from collisions, contact lenses that measure glucose levels in diabetes patients and precision medicine that characterizes an individual patient from the molecular to the muscular level.
The research and development in the life sciences seems unstoppable. Fifty IPO’s in the last year alone speak to the entrepreneurial spirit that has caught fire.
But the need to innovate is time sensitive. In the pharmaceutical market, close to half a trillion of revenue in the last year, traditionally from branded products, came from generic products instead. As patents expire and their generic replacements threaten branded pharma’s bottom line, the pressure to bring new products to market that have demonstrated value is high.
For both pharma and medical devices, “value-based reform” is placing demands on companies to focus their R&D on outcomes and results; as the industry moves away from a supply-driven system and towards a patient-centered one, research developments like the ones mentioned above need to prove they bring unique market and patient value in order to succeed.
However, resources to accelerate growth are hard to come by. Forty-five percent of leaders in the life sciences industry said they are pessimistic about the sufficiency of their R&D budgets and the ability to meet corporate research goals. In addition to baseline product research and development, companies need to ensure their products are unique and valuable in a competitive market.
How can you stay innovative and resilient despite changing markets, legal reform, and a concrete lack of funding for R&D?
In the Harvard Business Review, Michael E. Porter and Thomas H. Lee outline six steps essential to succeeding in a value based system. Number six is a universal truth across sectors and industries:
“Invest in technology platforms that cut costs, measure value, and solve core business problems for you, whether it is on the R&D, clinical or go-to-market sides of the business.” [wp-tweet-me][Tweet Me!][/wp-tweet-me]
Then you can spend time and resources doing what you do best — creating devices, drugs and products that enhance people’s lives.