– Pricing and reimbursement pressure remains a top strategic
– Innovation in science and technology, new healthcare delivery
models, data and analytics, and value-based pricing models expected to
transform industry –
– Pricing and reimbursement pressure and the need for
innovation continue to drive strategic activity –
NEW YORK–(BUSINESS WIRE)–Lazard Ltd (NYSE: LAZ) today released its second in-depth study
of strategic challenges and opportunities in the global healthcare
industry, surveying C-level executives and investors in the U.S. and
Europe across three sectors: Pharmaceuticals and Biotech; MedTech; and
The results of the 2019 Global Healthcare Leaders Study echo the
concerns that healthcare executives expressed in 2017 on the need to
address rising cost trends with value-based pricing models and
scientific innovation. This year’s results, however, showed an increased
focus on the potential impact of technological advances in artificial
intelligence, machine learning and data analytics.
“Healthcare business leaders still view pricing pressure as the greatest
strategic challenge to the industry,” said David Gluckman, Co-Head of
Lazard’s Global Healthcare Group. “They have told us that they are more
focused than ever on innovation in science, technology and risk-sharing
pricing models as ways to meet this challenge.”
“Respondents also believe that data analytics, artificial intelligence
and machine learning will have transformative effects throughout the
healthcare industry, though their impact remains more expected than
extant,” said Peter Orszag, Co-Head of Lazard’s Global Healthcare Group.
The study offers a variety of insights, including the following selected
Pricing and reimbursement pressure and the need for innovation are
driving strategic activity among healthcare companies. 72% of industry
leaders expect to see an increase in partnerships, collaborations and
joint ventures over the next 18 months.
76% of healthcare industry leaders surveyed believe that
non-traditional competitors will have a meaningful impact on the
healthcare market over the next 3-5 years.
Pharma/biotech executives’ top priorities when evaluating M&A
targets are: enhancing long-term growth (41%), strengthening current
technology or accessing a new technology (41%), and strengthening a
therapeutic area (33%).
While views remain mixed on the effective use of data analytics or
“Big Data,” more healthcare services executives believe it is being
used effectively (54%) than not (46%). The majority of respondents
(59%) agree that the integration of data – clinical, medical claims,
socioeconomic data, drug claims – is more important than having access
to any one type of data.
More than half (56%) of MedTech leaders believe Big Data will
increasingly influence physician behavior through the integration of
imaging, diagnostics, patient records, and clinical decision support.
The Global Healthcare Leaders Study surveyed 387 C-level executives and
72 healthcare investors in the U.S. and Europe. C-level executives
included CEOs, CFOs, and senior executives involved in
strategic decision-making. Respondents were chosen to represent a
statistically significant mix between subsectors including Pharma and
Biotech (170); MedTech (77); and Healthcare Services (201).
The Global Healthcare Leaders Study reflects Lazard’s approach to
long-term thought leadership, commitment to the sectors in which it
participates, and focus on intellectual differentiation. An executive
summary of the Study is posted at www.lazard.com/perspective.
Lazard’s Global Healthcare Group advises senior executives and boards of
directors on strategic M&A, corporate preparedness, capital advisory,
and other strategic and financial matters. The group is active in all
areas of the healthcare and life sciences industry, including
pharmaceuticals, biotechnology, healthcare services, and medical devices.
Lazard, one of the world’s preeminent financial advisory and asset
management firms, operates from 43 cities across 27 countries in North
America, Europe, Asia, Australia, Central and South America. With
origins dating to 1848, the firm provides advice on mergers and
acquisitions, strategic matters, restructuring and capital structure,
capital raising and corporate finance, as well as asset management
services to corporations, partnerships, institutions, governments and
individuals. For more information, please visit www.lazard.com.
Follow Lazard at @Lazard.
Judi Frost Mackey, +1 212 632 1428
Clare Pickett, +1 212 632 6963