This new ebook is providing new career and workforce trends in the Life Sciences Industry.
Big opportunities, mixed capabilities mark lanfear Bridging the talent gap in the global life sciences industry
/02 ChangeinLifeSciences R&Dexpenditure 19992009 32% 24% Asia 38% 31% U.S.
Growing and ageing populations around the globe have greatly increased demand for medicine and health products. As a result, the field of life science which comprises mainly BioPharmaceutical, Device and Consumer Health companies has become a trillion-dollar global sector. The largest companies in the sector are headquartered primarily in the United States (US) and Western Europe. However, life sciences focused companies in emerging economies, such as China and India, are beginning to grow aggressively. Between 1999 and 2009, US expenditure in life sciences research and development (R&D) decreased from 38 percent to 31 percent of the global total. Over the same period, Asias share grew from 24 percent to 32 percent.1 At the same time, many of the industrys largest and well known are feeling the pinch as blockbuster treatments come off patent, consumer spending dries up, regulatory burdens rise and workforces age. Against this backdrop, there is a high level of global competition for the most talented science, technology, engineering and math (STEM) staff especially graduates with highly specialized skills. 1 NIH, Turning Discovery Into Health, www.nih.gov/about/impact/impact_global.pdf. Introduction /03 Many of the industrys established giants are hurting as blockbuster drugs come off patent
The location of those skilled professionals and indeed the entire life sciences industry is also shifting towards the worlds emerging economies. India produces 1.2 million engineering graduates annually.2 It also boasts a pharmaceuticals industry with maturing drug development capabilities and a strong generics market built, in part, on expired patents. Chinas life sciences market is growing fast as well, with strong increases in STEM graduate numbers and a greater share of life sciences patents. However, volume doesnt always equal quality. In particular, life sciences companies are finding that many of the new graduates entering the workforce require additional training to be productive to expected levels. There is no substitute for experience or quick fix when it is not there. So what lies ahead? In this industry overview, we discuss how international outsourcing and collaboration will be vitally important for life sciences players. Across the sector, the most successful players will be those that can strike the best balance between the strength of the traditional leaders and the dynamism offered by new markets and professionals. 2 James Howell, More demand for graduates in STEM subjects, Graduate-Jobs.com, www.graduate-jobs.com/news/12394/More_ demand_for_graduates_in_STEM_subjects. /04Introduction Life sciences companies are finding that many of the new graduates entering the workforce require extensive training.
/05 Aglobalsector ingoodhealth
Companies based in the US and Western Europe lead the trillion-dollar global life science sector but companies that participate in the Bio-Pharmaceutical and consumer health vertical are growing quickly in emerging markets. The global life sciences sector is already large and growing rapidly. Population growth is the main factor increasing demand for life sciences products emerging markets have emerging middle classes that are demanding access to a suite of healthcare and consumer products. The worlds population continues to rise rapidly, standing at 7.1 billion in 2013.1 The United Nations Population Fund estimates it will increase to around 8 billion by 2025.2 The next two most important factors are growth in ageing populations and increasing levels of diet-related health problems, such as diabetes and hypertension. This demand is expected to increase sharply in coming years. Between 2000 and 2050, the World Health Organization (WHO) expects the global number of people over 60 to double from 11 percent to 22 percent of the worlds population.3 1 Current World Population, About.com, December 2013, geography.about.com/od/obtainpopulationdata/a/worldpopulation.htm. 2 United Nations Population Fund, The World at Seven Billion: Top Issues Fact Sheets, July 2011, www.unfpa.org/webdav/site/global/ shared/documents/7%20Billion/7B_fact_sheets_en.pdf. 3 World Health Organization, Interesting facts about ageing, March 2012, www.who.int/ageing/about/facts/en/index.html. /06A global sector in good health The United Nations Population Fund estimates it will increase to around 8 billion by 2025.
The high global instance of diet-related ailments such as cardiovascular disease and diabetes has led to much greater demand for preventative drugs and medical devices, as well as mobile health and eHealth services. WHO cites cardiovascular diseases as the leading global cause of death and anticipates diabetes will be the seventh leading cause of death come 2030.4, 5 Slower growth in top 10, aggressive growth in emerging economies The growth of the worlds largest life sciences companies is slowing. The operating margin for big pharmaceuticals companies in 2013 is forecast at around 20 percent, down from more than 24 percent between 2003 and 2009.6 The US is by far the worlds largest life sciences market, turning over $396 billion in 2011. China and Germany were next Germanys life sciences market was worth $41.5 billion in 2011, while Chinas is predicted to grow to $127 billion by 2015.7 4 World Health Organization, Diabetes fact sheet, October 2013, www.who.int/mediacentre/factsheets/fs312/en/index.html. 5 World Health Organization, Cardiovascular diseases (CVDs) fact sheet, March 2013, www.who.int/mediacentre/factsheets/fs317/en/. 6 Euler Hermes, Does the global pharmaceutical industry need a new business model?, Paris, France, March 20, 2012, as quoted in Deloitte Access Economics, 2013 Global life sciences outlook: Optimism tempered by reality in a new normal., www2.deloitte.com/ content/dam/Deloitte/global/Documents/Life-Sciences-Health-Care/dttl-lshc-2013-global-life-sciences-sector-report.pdf. 7 Espicom, EIU: Healthcare and Pharmaceuticals Report China, as cited in Deloitte Access Economics, 2013 Global life sciences outlook: Optimism tempered by reality in a new normal, www2.deloitte.com/content/dam/Deloitte/global/Documents/Life- Sciences-Health-Care/dttl-lshc-2013-global-life-sciences-sector-report.pdf. /07A global sector in good health The US is by far the worlds largest life sciences market, turning over $396 billion in 2011.
The US also remains the worlds leading grantor of biopharmaceutical patents, but its global percentage of patents awarded declined from 38 percent to 33 percent in the last decade. In contrast, Chinas share of global patents granted increased 12 percentage points across the decade to 16 percent in 2009, and continues to rise. Chinas life sciences market is showing significant growth. The countrys pharmaceutical market is already the worlds second largest with 5.6 percent of the global market share, and its government has also pledged to invest 2 trillion Yuan ($308.5 billion) to develop its biotechnology industry.8 Russia, India and Brazil also show promise on the global life sciences stage. Russias government has initiated a $428 million mega-grant program to strengthen life sciences research and modernize the industry.9 Brazils pharmaceutical market is the third-largest in the Americas, after the US and Canada, with a 2011 value of $25.7 billion.10, 11 The Economist Intelligence Unit forecasts that Indias pharmaceuticals market will grow 13 percent annually to $29 billion by 2016.12 8 Generics and Biosimilars Initiative, Chinas 5-year biotech investment fires clear warning to US, August 2013, www.gabionline.net/ Biosimilars/News/China-s-5-year-biotech-investment-fires-clear-warning-to-US. 9 UNMC, Dr. Kabanov receives mega-grant from Russian Government, UNMC News, Fall 2011, www.unmc.edu/publicrelations/docs/ discover/fall2011_news.pdf. 10 Generics and Biosimilars Initiative Online, The pharmaceutical market in Brazil, December 2011, www.gabionline.net/Generics/ General/The-pharmaceutical-market-in-Brazil. 11 Export.gov, Drugs and Pharmaceuticals Overview, Doing Business in Brazil: 2011 Country Commercial Guide for U.S. Companies, September 2011, export.gov/Brazil/static/CC_BR_DoingBusiness_CCG_PDF_Chap4_DrugsandPharmaceuticals_Latest_eg_ br_062844.pdf. 12 Management Discussions: Global Pharma Market, India Info Line, May 2013, www.indiainfoline.com/Markets/Company/ Fundamentals/Management-Discussions/Unichem-Laboratories-Ltd/506690. /08A global sector in good health Chinas pharmaceutical market is already the worlds second largest with 5.6 percent of the global market share.
A shortage of highly skilled workers is increasing competition for talent among top life sciences companies, compounding other industry pressures. Access to the best and brightest talent is essential for companies looking to stay competitive in the face of growing global demand for fast-moving and technologically sophisticated pharmaceuticals and biotechnology products. However, its a complex landscape right now while some areas of the market are growing quickly and new talent is becoming available, we are also seeing waves of layoffs among leading companies as they adjust to new, lower-profit realities. Operating pressures have resulted in cost cutting and layoffs Between 2009 and 2012, expired pharmaceutical patents led to an estimated $100 billion worth of lost drug sales worldwide. This figure is expected to be $29 billion in 2013 alone.1 Companies that specialize in generic drug manufacturing are now free to begin the process of producing equivalent therapies for a decreased cost, which is placing pressure on organizations seeking to fu