R&D in 2023 grew 5.89% with a substantial 21,292 drugs in development from preclinical to launch. This was behind 2022’s 8.22% surge but higher than 2021’s 4.76%. These three years of growth show a steady and seemingly sustainable increase year-over-year. The bad news is that most of the 2023 drugs are in the prelaunch phase meaning revenue generation is still in the future. Executive Recruiter, Nancy Ragonese highlights five other important 2023 BioPharma Sales Trends.
Top 5 2023 BioPharma Sales Trends
2022 and 2023 saw raises at the highest level since the Great Recession of 2008 according to a report from Willis Towers Watson. The continuing tight talent market should drive employee compensation even higher in 2024. According to Ruth Thomas, pay equity strategist at Payscale, the last few years have indicated that the “new normal” for salary increases may be in the 3.5%-4% range. Workers are recognizing and asking for compensation to offset the impact of inflation.
Automation, AI and Machine Learning
One of the more significant 2023 biopharma sales trends is market leading pharmaceutical companies, AstraZeneca, GSK and J&J, making significant investments in machine learning and AI for drug discovery. The use of this technology allows for the quicker and more comprehensive analysis of large data sets exponentially modernizing the drug development process and reducing costs while accelerating results.
This acceleration of results is also happening in the digital transformation of patient care. 2023 saw significant growth with this technology processing data more quickly and efficiently and was used more extensively for online and remote assessment, diagnosis and treatment of patients.
Market access in 2023 has been affected by high inflation rates and widespread supply chain insecurities. Jayne Hornung, Chief Clinical Officer at MMIT comments. On this 2023 biopharma sales trend, “Pharma companies are still dealing with pandemic-induced manufacturing constraints ranging from labor shortages to delivery delays in materials and equipment. The rising cost of labor, transportation and raw materials is compounding the issue. Inflation will make pharma companies tighten their belts in all areas and could potentially increase the cost of drug therapies themselves, adding to the challenge of competing with the biosimilars.”
Gene editing and sequencing have greatly expanded he definition and implementation of personalized medicine and was a significant 2023 biopharma sales trend. Medical treatments are being specifically tailored to the individual. The one-size-fits-all approach of traditional medicine are being abandoned as patients seek and are willing to pay for this specialized treatment.
Mega Mergers Drying Up
The massive acquisition spree of the last twenty years in pharma as a strategy for growth started to change in 2023 and is no longer one of the 2023 biopharma sales trends. The cost of money due to increased interest rates means the cost of the acquisition targets along with the risk involved is making pharma companies back away. The capital to fund these deals is going elsewhere and there are fewer targets to buy.