A: BIOPHARMA FACTORY SALES are expected to grow about 20 percent faster than GDP growth. Some other changes include:
- R&D spending will grow at about a 3 percent CAGR, while spending on R&D outsourced services will grow 4 percent per year.
- More “killer experiments” will be conducted to reduce the current high cost of developing new drugs. These experiments will use better predictive tests, and the use of genomics, biomarkers, EMRs, claims data, patient stratification, and Bayesian statistics will become more common.
- CROs, CDMOs, and CMOs will have better access to data and data analytics. Their margins will gradually rise as lower-margin smaller players are weeded out.
Fred is the managing director at Warburg Pincus and former chairman of Bausch & Lomb. He has served as the CEO of several pharmaceutical companies and chaired significant pharmaceutical industry organizations.