Changing Tide for Life Science Industry
Innovation is a key differentiators in Life
science industry—perhaps the key differentiators—in the marketplace,
separating winning companies from the me too. It takes a wide array of
forms, from new-product and product development to the reinvention of business
processes and the launch of entirely new business models which included global
markets. It is the subject of endless discussion among executives, How can we
make our med tech company more innovative?
conducted a survey.
Our latest survey on the topic, to which executives
representing all major life science companies , private investors and some VCs responded,
sheds new light on how med tech companies are pursuing innovation—how they’re
going about it, what they’re emphasizing, and what’s working and what isn’t.
Among its key findings:
- Innovation remains a top strategic focus for the majority of medtech and life science companies, with 66 percent of respondents to our survey ranking Obesity/ Diabetes, Orthopedics/Spine and Cardiovascular of their top-three therapeutic areas of focus and strategic priorities.
- Consistent with that finding, 67 percent of respondents said their companies will increase spending on innovation in 2013. Either in the way of R&D or acquisitions.
- Simultaneously, many executives over half of those we surveyed remain unsatisfied with the financial returns on their company’s investments in innovation. More funds need to be infused, because there is more demand from China, Brazil, India, Russia, and the rest of the world.
· A risk-averse VC culture, lengthy
product-development times, and a lack of funds are the three biggest stumbling
blocks facing companies seeking to improve their return on innovation.
But,
this is changing; VCs are now looking at early stage, rather than later stage
companies in the Obesity and Diabetes sector. “Investing in any obesity company
is going to give us terrific returns” commented one VC.
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