What are the opportunities and challenges in the Life Science Market in 2024?
Following a tumultuous period for the Life Sciences industry, Coalesce Management Consulting looks ahead to a year of great change and opportunity across the sector. Here’s our 2024 outlook for the pharmaceutical, medical device and nutrition sectors.
Our global technical consultants specialise in everything from project and construction management, to automation engineering, commissioning, qualification and validation across large pharmaceutical, medical device, biotech, R&D and manufacturing firms, which gives us excellent insights into the growth areas and opportunities within the life sciences market.
Understandably, we see many organisations still risk averse and cautious, given the continued instability of the global economic climate. However, others are making bold and innovative plans to revitalise their operating models to take full advantage of data-driven insights so that they can satisfy stakeholders, better serve patients and gain increased control of their markets.
Read on for some of what we’ve learnt about the biggest growth opportunities and the key challenges the life sciences sector faces.
Life Sciences opportunities in 2024
The growth of the healthcare manufacturing sector
It’s more than 20 years since Singapore set out its mission to become a global biotech hub, when the government launched the National Biomedical Science Strategy in hopes of creating a “fourth pillar” of the economy.
Two decades and billions of dollars of investment later, the seeds planted from the establishment of Biopolis in 2003 may finally be bearing fruit.
A series of promising developments that ultimately didn’t amount to anything have prevented Singapore from becoming the world-leading biomedical location that was promised – but change takes time and small successes drive investor interest for major opportunities. From 2012 to 2022 the number of Singapore-based biotechs increased from seven to 52, with the government’s Research, Innovation and Enterprise 2025 scheme set to inject $25 billion SGD in funding by 2025.
A significant success story took place in May last year with the opening of the US$130 million (175 million SGD) Thermo Fisher Scientific Fill-Finish Facility in Joo Koon Circle in the Jurong district, which will develop and manufacture vaccines and biologics – the first of five vaccine production plants that have been planned by pharmaceutical companies since the Covid pandemic.
With the potential to produce more than a billion vaccine doses annually, these combined plants will be massive for Singapore’s biomedical market.
The major players are taking notice, with Johnson & Johnson signing a “first of its kind” pact with the Singapore government last September, to invest and develop early-stage companies in medicines, medical technologies and healthcare solutions, through a series of local programs and global partnerships.
Operating as JLABS – J&J’s incubator arm – the company will be using their extensive resources to help selected startups execute their plans and pitch for necessary funding, with many anticipating growth beyond the Singapore market.
So in 2024 we see this potential opening up and Singapore’s life science manufacturing sector finally taking shape in the way that was promised back in 2000. This is the perfect time to be operating in the life sciences sector, which is why we’re focusing on bringing on more experts and more growth within the area.
We’re providing our services to more life sciences businesses in Singapore than ever, and ensuring we’ve got the best manufacturing experts available on our bench.
The exponential growth of AI technologies
The capability and takeup of AI driven systems has grown exponentially throughout 2023. This is reflected across all of the sectors we serve, from aerospace and automotive through to process manufacturing. This is no more apparent than in the life sciences sector.
There’s been a real buzz around the subject of generative AI in recent months. Most of the larger clients we work with recognise its revolutionary potential. They’re looking for ways to embrace the technologies and position themselves as employers of choice to attract the top talent.
Generative AI, also referred to as GenAI, is already sharing a glimpse of its transformative potential for the sector. It allows you to input prompts to generate new content and can already do this with images, videos, code, sounds and more. Appealingly, it “learns” as it operates and will continue to be trained to handle scientific publications and documents that already exist online.
According to a report by Definitive Healthcare, the global AI in life sciences market is projected to reach $7.09 billion by 2028, growing at a compound annual growth rate (CAGR) of 25.23%. The report tells us that half of the 50 largest pharmaceutical companies have entered into partnership or licensing agreements with AI companies.
We’re excited about the potential for AI to create more effective drugs, to make it easier to identify when patients are ready for treatment, to enable robot-assisted surgeries, to develop the technology behind digital twins, and to ultimately improve patient outcomes. We’re also expecting to see more AI applications used to diagnose disease earlier, support clinical trials, and mitigate risk—all while cutting costs!
The sky seems to be the limit when it comes to the opportunities that AI offers the life sciences sector. Here are some of the areas that we are particularly enthusiastic to support:
More precise, precision medicine!
The field of precision medicine is set to benefit massively from AI. This is largely due to revolutionary developments in the identification of biomarkers, based on a patient’s genetic profile, lifestyle, or environment. AI algorithms analysing these biomarkers can help health professionals deliver tailored treatment plans that are more effective, safer, and more efficient.
Some applications are already in action. For example, IBM Watson has developed an AI-powered platform for processing clinical trial data and scientific publications. This technology is already helping to identify RNA-binding proteins for ALS and Alzheimer’s disease.
Unlocking the power of trapped data
The healthcare industry generates a huge amount of data every day, much of which is hidden and unappreciated within organisations.
As generative AI evolves, it will increasingly handle vast data sets, tackle large unlabeled data, and predict outcomes with more intelligence and efficiency than humans alone.
Through 2024, we expect big leaps in data-driven automation and structured data, which allows trapped information to be leveraged for pharmaceutical trials, efficacy studies, and safety assessments. Coupled with the growth of DTx technologies, this points to a patient-centric future for healthcare.
AI-driven scans and diagnostics
AI is poised to revolutionise medical diagnostics, making scans faster, more efficient, and accurate. Highly trained AI algorithms on large datasets of medical images will assist oncologists and radiologists to identify abnormalities in X-rays, CTs, and MRIs, providing better, faster diagnoses.
Bold innovation for a challenging world
Life sciences company leaders consistently rank innovative new therapies and products as a top priority.
Digital therapeutics (DTx) is a growing area, offering better patient adherence, treatment monitoring, and coaching. These technologies promise to reduce waiting times and readmission rates, enhancing both patient outcomes and provider efficiency.
Direct-to-consumer model redirection
There’s a clear shift toward direct-to-consumer (DTC) healthcare. The pandemic normalized virtual consultations, enabling patients to access care from home, which has driven start-up growth in DTC services. Companies see benefits in convenience, cost reduction, and streamlined processes.
Healthcare e-commerce continues to grow
The growth of online pharmaceutical and medical device sales is transforming healthcare commerce. E-commerce allows smoother B2B interactions and offers patients broader product choice, discounts, and supplier flexibility.
Life sciences challenges in 2024
AI adoption and education
While many are enthusiastic about AI, some life sciences professionals are cautious. Cybersecurity risks, data integration challenges, and infrastructure demands remain key concerns. Regulatory frameworks are struggling to keep pace with innovation.
Drug pricing problems
Pharmaceutical companies like Pfizer, Sanofi, and Takeda are adjusting drug prices in response to the Inflation Reduction Act, which allows the US government to negotiate drug prices from 2026. These changes impact both financial planning and public expectations.
Supply chain shake-ups
Global instability, ongoing conflicts, and potential future pandemics affect drug supply chains, sometimes forcing less environmentally sustainable routes. Companies are investing in digital solutions to mitigate these risks.
The economy and inflation
Interest rate increases and inflationary pressures affect confidence in expansion plans. Companies focusing on high ROI projects and technology adoption are more likely to prosper.
Health equity considerations
Life sciences companies are increasingly prioritising health equity, conducting inclusive clinical trials to ensure products are safe and effective for all demographics, particularly underserved communities.
Delivering Life Science Expertise in 2024
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