1.
NEW
SCIENCE
Biopharma’s New
Growth Machine
Accenture LifeSciences
Patient Inspired. Outcomes Driven.

2.
2
The Biopharma industry is facing
compressive disruption,
But a new growth engine is emerging
that will drive the majority of revenue
through 2022.
We call it New Science.

3.
3
WHAT IS
COMPRESSIVE DISRUPTION?
Many asset-heavy organizations
are experiencing a gradual and
dangerous “compressive
disruption” when a series of
innovations, macroeconomic
factors and other changes
combine to squeeze profits
over time.

4.
BIOPHARMA’S
COMPRESSIVE DISRUPTION
DECLINES IN:
Three key indicators in Biopharma
Investor confidence in future earnings
Tenure of marketing leading treatments
Pipeline replacement ratios
01
02
03

5.
5
Investor confidence
in future earnings is
declining.
Future Value as a percentage of
Total Enterprise Value has dropped
for three years in a row, from 42%
in 2015 to 28% in 2018.
BIOPHARMA’S
COMPRESSIVE DISRUPTION
01
Sources: Capital IQ. Accenture Research Analysis. Calculations are the aggregated values for the pharmaceutical segment.
Accenture High Performance Business Analysis 2018. Pharmaceutical & Biotechnology relative performance analysis of indicators
including, growth profitability, and value indicators as reported by the market and monitored over 10 years. The HPB study
identifies which companies are top performers within their industry and what distinguished them from their international peers

6.
6
Tenure of market
leading treatments
is declining.
Average tenure for a
market leading treatment
in a therapeutic area has
dropped from 10.5 years in
2001 to 5.1 years in 2017.
BIOPHARMA’S
COMPRESSIVE DISRUPTION
02
Source: Accenture analysis, data provided by Evaluate Pharma

7.
7
BIOPHARMA’S
COMPRESSIVE DISRUPTION
50% decline expected from
2012 thru 2022.
More specialized treatments
coming to market that treat
smaller patient populations
generating lower revenues.
Pipeline replacement
ratios are declining.03
Source: Accenture analysis, data provided by Evaluate Pharma

8.
NEW SCIENCE INVOLVES:
A new mechanism, modality, indication or health
technology that has been identified by the FDA or
other regulatory entity as having met an unmet
need, exceeding standard of care
Often has a technology companion
Can be the technology alone
WHAT IS
NEW SCIENCE?

9.
9
NEW SCIENCE WILL DRIVE THE MAJORITY OF
INDUSTRY GROWTH
New Science is expected
to drive 54% of industry
revenue from 2017-2022.
Source: Accenture Research. Capital IQ.

10.
10
NEW SCIENCE IS DRIVING
EXCEPTIONAL GROWTHACROSS MULTIPLE THERAPEUTIC AREAS
Source: Accenture analysis, data provided by Evaluate Pharma

11.
11
NEW SCIENCE IS MORE LIKELY TO
REACH AND PASS
REGULATORY APPROVAL
New Science has a 50%
higher probability of
Technical and Regulatory
Success (PTRS) compared
to other NMEs and NBE’s.
Source: Accenture analysis, data provided by Informa Pharmapremia

12.
12
LEADERS IN
NEW SCIENCE
ARE INVESTING
6-7 X’S AS MUCH IN
DIGITAL, DATA AND GENOMICS
Investments represent convergence of
science and technology rising to meet
demand for proof of improved outcomes.
Source: Accenture analysis

13.
13
TECHNOLOGY IS FAST
BECOMING PART OF TREATMENT
in some cases, the
entire treatment.

14.
14

15.
18
RESEARCH METHODOLOGY
Accenture Research defines a segment
of science as new across three
dimensions. Based on a global product
level analysis of 4000 unique products
of a total validated data base of 60,000
unique products as updated December
15, 2018.
This New Science Growth Assessment
was undertaken to better understand
growth/risk levers for products,
companies and therapeutic areas and
to define an actionable category of
interest and further evaluation.
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