Prime dangers for all times sciences sector revealed

For the examine, WTW polled 600 business leaders within the well being and life sciences sector. Contributors had been requested to rank what they felt had been the highest dangers to enterprise success within the subsequent three to 5 years:

Inner dangers

1. Information privateness/knowledgeable consent (46%)
2. Labeling and packaging (44%)
3. Product security failure/product recall (40%)
4. M&A dangers (39%)
5. Expertise acquisition and retention (38%)

Exterior dangers

1. Atmosphere/local weather change/excessive climate (44%)
2. Price and availability of inputs together with supplies and vitality (43%)
3. Cyber dangers (40%)
4. Altering or rising laws (39%)
5. Social inflation/rising price of litigation (36%)

Collaborations and M&A

The examine discovered that companies are specializing in collaboration and M&A over new merchandise.

“Business collaborations emerged because the sector’s best alternative over the following two years, named by 35% of respondents amongst their prime 5 enterprise priorities,” WTW mentioned. Thirty % named strategic acquisitions and business collaborations amongst their prime three strategic aims.

Conversely, solely 15% mentioned launching new merchandise was amongst their prime priorities, whereas solely 12% named IPOs.

“This might mirror a want to pause and get well after a excessive interval of exercise, together with the push to develop new vaccines,” WTW mentioned.

ESG dangers

Data privacy and knowledgeable consent points had been prime of thoughts for a lot of within the sector, WTW mentioned.

“Because the sector turns into extra depending on knowledge to tell technique and drive innovation, companies are additionally extra aware not solely of the alternatives but additionally the dangers this brings,” WTW mentioned. “With the rise of digital healthcare, life science firms are coming below rising scrutiny from regulators, courts and the general public for the way they use affected person knowledge and the way they receive their consent.”

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Fifty-two % of survey respondents mentioned that improved knowledge and knowledge entry had been amongst their prime 5 alternatives from digital transformation over the following three years. Nevertheless, 46% mentioned knowledge privateness and knowledgeable consent had been among the many prime inner elements posing the best threat to their enterprise over the following few years, and 38% named knowledge privateness as considered one of their prime three ESG dangers.

Well being and race fairness can be turning into a extra urgent situation for the sector. Fifty % of respondents mentioned well being and race fairness was among the many prime three rising themes that may have a constructive impression on the sector over the following three to 5 years, and 42% mentioned points associated to well being and race fairness and entry to drugs had been amongst their prime three ESG social dangers.

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