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Life Sciences

Life Sciences

Life Sciences

The Life Sciences sector contributes to one of the most important assets one can have: health. Its main objective is to discover and produce solutions which offer cures for diseases or even prevent the onset of disease. The scope of the sector is global, as its solutions potentially provide benefits to all the citizens of the world. Whilst the life sciences sector constitutes many different players (startups, biotech, pharmaceutical, medical device and diagnostic companies) it faces different but also very similar challenges. We see a changing landscape as customers become more data-rich, but we are also conscious of the ever-changing regulation and compliance obligations, M&A opportunities and complex supply chains that are issues that have a major impact on the Life Sciences sector.

Our team of professionals is ready to support you in areas such as: 

Accelerating research and development pipelines

Spiralling research & development (R&D) costs and shorter product lifecycles, combined with increased risks, are having a negative effect on the return on investment and productivity returns for Life Sciences companies. In addition, with the growing uptake of personalised medicine, the focus on micro-populations including indication-slicing and rare and orphan diseases, and a reduction in eligible patient populations, the era of ‘one-size-fits-all’ therapy is ending. Governments, insurers and patients are requiring greater transparency around drug pricing; combined with rising demand for healthcare and falling budgets, this is putting pressure on Life Sciences companies to reduce costs and prices. One way for companies to tackle this pricing pressure is by streamlining their R&D. 

Guidance for fair pricing and commercial strategy

The Netherlands is leading the discussion internationally regarding pricing of medicines, and therefore is a fertile ground for innovative commercial and pricing strategies. Fair pricing is a process of finding an acceptable middle ground between what society perceives as sound spending of health budgets versus the need on the part of Life Sciences companies to fund their model of discovery, manufacturing and distribution.

KPMG has helped many Life Sciences clients to define a commercial strategy enabling them to navigate through the complexity of the stakeholder landscape. Examples of commercial solutions vary from value-based pricing, combination therapy pricing and other commercial frameworks. 

Future-proof business models and operating models

Downward pressure on pricing, shifting from treatment to prevention and trends such as new therapies, advances in technology and consumerisation of healthcare require supply chain leaders within the Life Sciences industry to rethink their operating model. At KPMG we understand that each supply chain constitutes a response to a specific business model, hence we have identified three archetypes of Life Sciences business models for which a corresponding supply chain can be built, namely an active portfolio company, a virtual value chain orchestrator or a niche specialist.

When supporting our clients in their supply chain transformations, through strands varying from network optimisation, sourcing, manufacturing efficiency or delivery performance, we always keep the end goal in mind, and we are able to translate the end-state into concise actions and solutions which can improve the performance.

Data-driven decision-making

In a global environment defined by constant disruption, Life Sciences leaders need to be confident in their decisions, and that means being confident in their data, their algorithms and their analytics capabilities. KPMG’s network of Data & Analytics professionals recognises that analytics hold the power to creating great value. That is why our professionals take a ‘business first’ perspective, helping to solve complex business challenges using analytics that clients can trust.

Data & Analytics professionals focus on solving complex issues across all the key drivers of organisational value, including growth, operational excellence and risk and compliance. The result is trusted analytics solutions and services that business leaders can believe in to help increase revenue, reduce costs and manage risk throughout the enterprise. 

Cybersecurity enabling technology adoption

For organisations that have their cybersecurity strategy in order, new technology is not a threat, but rather an opportunity to optimally and confidently take advantage of the opportunities that new technology offers. KPMG maps the risks for your organisation and minimises them by applying a customised strategy. We do this proactively and with an eye for the human factor, because cybersecurity is about much more than information technology and compliance with rules.

Growth through M&A and strategic alliances

According to KPMG’s CEO survey, 43% of Life Sciences CEOs say they have a “high appetite” for M&A. 58% of CEOs said using cheap financing, such as taking advantage of low interest rates before they rise, will be a primary driver of deals over the next three years up to 2022. And, specific to the Life Sciences sector, there is a strong belief among CEOs that strategic alliances are the primary driver for growth, as indicated by 41% of respondents.

Our teams of specialists combine a global mindset and local experience with deep sector knowledge and superior analytics tools to help you navigate a complex, fragmented process. From helping to plan and implement strategic change to measurably increasing portfolio value, we focus on delivering tangible results; the kind of results that let you clearly see what you gained from the deal at hand, and what you want to bring to the next deal down the road. 

Navigating through the regulatory landscape

Pharmaceutical, biotech, clinical laboratory, and medical device organisations must prepare for and manage a new surge of regulatory review and enforcement actions. Failure to comply with changing regulations can have serious consequences, including fines, criminal prosecution and debarments. 

At KPMG, we can help you to assess business practices and monitor programmes to avoid problems proactively and, when necessary, we investigate and can attest to your efforts to manage the potential consequences of alleged compliance failures. We can assist you in all phases of the regulatory compliance lifecycle, from the development of a robust compliance programme through benchmarking, investigation, remediation, and recovery in instances of perceived misconduct or non-compliance.

Assurance through audit

Financial statement audits provide assurance in respect of information used by investors and the capital markets – this is a responsibility vis à vis the public interest that KPMG Audit professionals take very seriously, applying powerful D&A procedures to compile better audit evidence and gain deeper insights, and exploring the role that auditors can and should play by engaging with stakeholders to better understand their views through KPMG’s ‘Value of Audit’ forum. KPMG Audit professionals are continuously innovating to better serve the capital markets and society as a whole.

More information

For more information on what KPMG can do for your organisation, please contact David Ikkersheim.