A new age has dawned in the pharmaceutical sector. A large number of biological medical products are being developed to market readiness. Biopharmaceuticals are noted for their targeted ability to treat or eliminate what are often rare conditions. Their strength lies in a more personalized approach. Each patient receives treatment that is tailored precisely to his or her condition. Estimates by Porsche Consulting suggest that the market for biopharmaceuticals will nearly double by 2030.
But there are enormous hurdles on the road to success in the biopharmaceutical business. Manufacturing processes are more complex than those for traditional chemical agents. And the new treatments are already facing a series of setbacks in their development. Research-based pharmaceutical companies must undergo a strict, complex approval process that lasts several years in order to put a newly developed drug on the market. Porsche Consulting analyzed the biopharmaceutical industry and the results show that of 1,000 molecules considered promising candidates for new medications, only half of them survive the first phase of clinical studies. Ultimately, only around 10 of the original 1,000 developments will make it through the approval process as therapies and become available to patients. This often takes a decade or more, and can devour billions of euros.
“For these innovations to benefit everyone, their development processes need to be improved and their remuneration models reassessed,” says Dr. Roman Hipp, Senior Partner and Global Head Life Sciences & Chemicals at Porsche Consulting. How can the processes become cheaper and faster?