Pharmaceuticals and Life Sciences services

COVID-19 has tested the capabilities and processes of the Pharmaceutical and Life Sciences (PLS) industry like never before.

From rapidly scaling pharmaceutical manufacturing to relieving bottlenecks in secondary care, we understand how much the PLS sector is changing. 

As the conversation shifts to post-COVID recovery, governments and businesses can seize an opportunity for change and make Australia a leading global player in the life sciences industry to innovate, grow and deliver medical breakthroughs. Global and Australian PLS businesses have a critical role to play in the health, wealth and resilience of the country.

The 2021-22 Federal budget includes several proposals to create opportunity within the PLS sector including:

• Manufacturing and R&D incentives
• A patent box tax concession
• A reduction in red tape for Employee share schemes (ESS)

While no new funding was allocated, funding priorities under the Modern Manufacturing Initiative (MMI) and the Supply Chain Resilience Initiative (SCRI) are more specific. This will help Australia build capability in areas of greatest benefit such as local mRNA vaccine manufacturing.

The patent box tax regime should further encourage local manufacturing. A corporate tax rate of 17% on corporate income derived from patents, will incentivise companies to locate IP in Australia. It will also expand companies’ local R&D scope through to commercialisation.

The future of Australia acting as a manufacturing and R&D hub for the Asia Pacific region is becoming a lot more attractive. Until then, Australia will continue to depend on imported products, pharmaceuticals, medical devices and their underlying materials.

Keep pace with changing customer engagement models

Among other emerging trends, COVID-19 accelerated digital customer engagement. In a recent global survey of over 500 physicians, we found that three-quarters of today’s physicians:

• Anticipate interacting less with pharma industry in Australia in the future
• Find value in only half of face-to-face contacts

Traditional customer engagement models typically focus on the number of calls made and messages delivered. New commercial models feature fewer but more impactful face-to-face contact points that are supported by effective personalised digital content. When adopting a newer model, consider the implications it will have on your commercial PLS organisation, including:

• Size
• Culture
• Technologies
• Performance management approach
• Leadership skill set 

Many pharma companies are reskilling their workforce to operate in a blended digital environment. This is helping to rebalance the role of the sales force versus medical affairs organisations. 

Grow responsibly and deliver on the ESG agenda

COVID-19 has highlighted huge health inequities that exist in society around the world. Innovative medicines and their treatment pathways need to account for these non-clinical differences to achieve the best patient outcomes. One way to show your value is by highlighting how your PLS organisation is prioritising the social determinants of health. 

Beyond innovative medicines, the pharmaceuticals and life sciences industry needs to focus on broader Environmental Social and Governance (ESG) topics. This will include understanding and addressing your environmental impact across:

• Carbon emissions 
• Waste within the production process and of end-products
• Product sustainability and packaging 

Addressing your ESG impact is also an opportunity to embrace circularity and forge new partnerships of mutual benefit. In particular, organisations with large and complex supply chains will be a major focus. Opportunities for social procurement and ethical sourcing that drive societal value will also be beneficial.