Biopharmaceutical companies spend an estimated $30 billion+ annually for drug commercialization. Macro industry trends such as a favorable R&D environment, evolving needs for commercialization activities, and increased outsourcing are driving strong growth in the commercialization services market. In our latest insights, we explore the forces behind those trends and the increased adoption of data science and advanced analytics across the drug commercialization value chain. We also highlight several leading-edge data analytics players and key drivers for M&A activity in the sector.
The pharma commercialization services market consists of three key segments:
Medical affairs: Responsible for communicating the clinical knowledge, scientific rationale, and best practice for a given therapy to healthcare professionals (HCPs) and other stakeholders.
Marketing: Encompasses all activities relating to the establishment of a successful product brand proposition, including understanding the target market, developing brand assets, designing and implementing creative strategies, and effective engagement of key stakeholders.
Market access: Process of making a drug available to patients who can benefit from the treatment by identifying target patient populations, developing an appropriate pricing strategy, and liaising with payers and Key Opinion Leaders (KOLs).
These segments are each underpinned by a range of services that, in turn, has a value chain of activities encompassing strategic/operational planning, execution, and monitoring.
The combined effect of three key biopharma macro trends is supporting increased demand for commercialization services.
Favorable pharma R&D environment: Continued growth in global pharmaceutical R&D spend, supported by historic levels of venture capital and IPO funding, is fueling late-stage trials and initial commercial activities. New drug launches have grown steadily over the last decade, and complex biologics that serve smaller, targeted populations are becoming an increasing part of the landscape.
Evolving needs for commercialization activities: Increasing biological complexity and pressure to get drugs to market faster is expected to drive demand for and earlier initiation of commercialization services. The commercial success of a drug may be maximized by engaging commercial services teams early in the development process to ensure clinical trials are designed based on commercialization requirements. There is also a higher demand for digital innovation due to its potential benefits to the commercialization process, such as the ability to integrate real-world/real-time data, target specific prescriber and patient audiences, and drive efficiencies through automation.
Increased outsourcing of services: As molecules in the clinical development pipeline become increasingly more complex, companies are looking for providers who have proven experience in delivery in specific therapeutic areas where they do not have the expertise internally. Growing demand for real-world evidence (RWE) data and the importance of digital solutions to the commercialization process is also expected to drive higher outsourcing levels as biopharma companies may lack the required technology expertise internally. Moreover, the cost-efficient and scalable nature of outsourced commercialization services allows biopharma companies to minimize fixed-cost investments and deploy their own capital strategically, thereby creating a better return on investment.