It’s a fast-paced marketplace out there for pharmaceutical, biotech and medical device companies. It’s easy to get swept away just trying to keep up with the pace of business, but there’s opportunity to be had for those companies that capitalize on these trends.
1. Smaller more frequent product launches. Product launches are often seen as seminal events for pharmaceutical companies. They rally the press, attract public attention and create forward momentum for a company.
The upside of this market change is the consistent, ongoing push for new products and innovation, which is hurtling the industry forward. The downside is with more product launches, announcements and press attention, there is a lot more noise in the industry and it can be difficult to gain attention.
It can also be problematic on the financial side of life science companies to track spending to ensure that the cost of launching, promoting and selling each new product is tracked back to the revenue generated by the product for thorough financial analysis. This can have grave effects on future business decisions, so it’s important that financial data is tracked impeccably and finance leadership maintains complete visibility at all times to remain nimble through the course of rapidly launching products.
2. Increasing healthcare costs. It’s no secret the cost of healthcare has risen rapidly in recent years. There have been multiple high-profile cases of sky-high drug pricing that have created public outcry and attention from the highest levels. This spotlight on pricing and the overall high level of attention placed on the cost of healthcare as the federal government sorts out its overall programs means there is simply more downward pressure on pricing today.
Pricing will come under scrutiny no matter the type of medication or treatment in question, and finance leaders must be ready to defend and price appropriately based upon data.
Companies that don’t track their spending explicitly will have a much more difficult time both strategizing their pricing and potentially defending that strategy in the future. Finance leaders need to be prepared to report efficiently and quickly on all aspects of spending related to a particular product. This will help any company stay ahead of the game and out of negative headlines.
3. Emerging markets. One key tenant to growth in the pharmaceuticals industry is to stay abreast of emerging markets.
To be ready to take advantage of emerging markets, which sometimes occur globally, in multiple geographies, time zones and with differing currencies involved; finance leaders must be ready to turn on a dime. They cannot afford to be held up by translating expenditures or not understanding the rules of various countries.
It’s nearly impossible for leadership to intimately know all the varying rules and regulations of countries they may need to do business with worldwide, but having a system that automates, organizes and visualizes the data you need to make decisions is a life saver and potentially a business maker as leaders can access the data they need, understand the regulations involved and make decisions based on data in real-time.
4. Globalization. As with emerging markets, expansion worldwide is a key trend in the business of life sciences. Companies are seeing the opportunity that lies in developing into areas that may have better access to natural resources, intellectual property, knowledgeable employee prospects, not to mention selling markets that are substantially different than today’s U.S. markets. This global expansion brings a host of its own challenges as finance leaders must navigate new currencies, regulations, taxes and trade laws.
Having full visibility into spending with currency adjustments, tax laws and regulations built into an automated system, can mean the difference between global being just plain impossible to being the game changer it can be.
Concur Travel, Expense and Invoice offer the right amount of visibility, scalability and automation to help pharmaceutical companies turn these marketplace trends into major strategic advantages.
For more information about how Concur works with pharma, biotech and medical device organizations, watch our Concur Solutions for Life Sciences overview.