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Accenture Life Sciences
Rethink Reshape Restructure...for better patient outcomes
Turning science
into value
High Performers deliver
on the commercial
promise of new science
through outcome-driven
operating models
Accenture Research Note: Biopharmaceutical
High Performance Business Study
Since Accenture’s last High Performance Business
(HPB) Study of the Pharmaceutical Sector,
released in January 2014, the industry outlook
has continued to improve with a rise in the industry’s
Enterprise Value1 driven by improved growth
expectations. A wave of new science has driven
the output of new drug launches to levels not seen
since the mid-1990s2, especially in high-value
specialty indications.
The industry’s Future Value3 has moved
back into positive territory for the first time
since 2007, albeit only slightly, reflecting
greater investor confidence and a predicted
return to sustainable, profitable industry
growth. However, at the same time, operating
margins have been deteriorating, owing to
the greater cost of investing in more latestage development and new launches as
well as reshaping operations and strategy.
Pressures from payers and governments
continue to mount, as they seek to slow
drug spending growth while linking pricing
directly with benefits. Furthermore, the
return to growth is polarized between the
High Performers, whose pipelines are poised
to deliver new science-based growth, and
the rest of the peer group, who are in various
stages of restructuring to find a path back
to sustainable growth.
2 | Turning science into value
The uptick in the innovation-driven growth
forecast is coming at a potential cost. Looking
ahead, the challenge will be to ensure that
operating models keep up with this exciting
pace of innovation and can fulfill the
commercial promise of the new science
in a more assertive payer and patient
outcome-based environment. The High
Performers identified in our research are
further advanced in achieving this goal with
innovation strategies focused on building
dominant positions in growth areas of
the market. They couple this with new
commercial capabilities that differentiate
their products’ value at an outcome level
and provide support services to patients
and healthcare professionals. The companies
that sustain high performance in the future
will marry the best innovation with the most
nimble operations and continue to fine-tune
offerings to the health economic and patient
outcome realities of today’s market.
Key Findings Summary
1 Confidence is back; expectations are high with companies making strategic moves
Enterprise Value (EV)1 continues to rise.
11%
Future Value (FV)3 is positive for the first time
since 2007.
+2%
+
EV
Mergers, acquisitions and divestitures are
restructuring the industry.4
$364B
Q3 2014
$131B 177%
2007
2014
17%
-15%
-
2013
Q3 2013
2014
2 Return to growth is predicted but polarized between High Performers and the rest
Industry growth is forecast to return in 2016,
with the High Performers expecting to see
significantly higher growth than their peers.5
High Performers have significantly higher
Compound Annual Growth Rates (CAGR) than
their peers.5
Six companies are now a step change ahead of
the pack, with Astellas joining for the first time
and Novartis re-joining.
6.5%
High Performers
2016
1.3%
Novartis
1.1%
Rest of
peer group
Rest of peer group
2015-19
CAGR
Roche
Astellas
BristolMyers
Amgen
Squibb
Novo
Nordisk
4.7%
High
Performers
3 Capturing the value of innovation is stretching margins and the markets' capacity to pay
The operating margins6 at 11 of the 16
companies have fallen over the last two years.
There is an estimated $65B gap between
the predicted growth in pharma spend in
developed markets and NME growth forecast.7
$190B
$125B
3%
Operating Margins
Recent and
Upcoming
NME
Launches
Drug price inflation in the US is running
high at 13.2% and particularly high for
specialty drugs.8
25.2%
Specialty
Drug Price
$65B
13.2%
US Drug Price
Developed
Market Net
Sales
2014-19 $ Growth Forecast
4 High Performers are focusing on building dominant growth positions and
reshaping operations
Several operational attributes and capabilities are distinguishing High Performers9:
1. Collaborating to get the best
science and breakthrough speed
to approval and launch.
2. Transforming their organizations
by leveraging partnerships, acquisitions,
divestitures and asset swaps.
3. Developing new business models
in response to the consumerization
of healthcare.
4. Mastering flexible pricing and
market access while demonstrating
superior outcomes.
3
1
Confidence is back; expectations are high with
companies making strategic moves
Our research shows a continued recovery in
the first 10 months of 2014 with Enterprise
Value1 up 11 percent, and reaching 36
percent above the pre-recession peak of
2007 (see Figure 1). Share prices have had
a mixed performance at the company level,
but overall the ARCA Pharma Index has
outperformed the S&P 500 by approximately
five percent over a two year period. This
improvement in valuation has increased the
industry’s Future Value3 as a percentage
of Enterprise Value from -6 percent of
Enterprise Value, at the end of 2013, to
+2 percent this year. This marks the first
time Future Value as a percentage of
Enterprise Value has been positive
since 2007.
In addition, the five year replacement
revenue ratio forecast has risen from 1.7
in 2010-14 to 2.8 over the next five years
(2015-19)10.
This shift reflects increased investor
confidence in the pharmaceutical sector
returning to sustainable future growth,
driven by recent and upcoming new launches.
Nine of the 16 companies in the peer group
analyzed had positive Future Value, up from
seven companies in the previous year. This
is the first time since 2007 that more than
half of the peer group had
positive Future Value.
This marks the first
time Future Value as
a percentage of Enterprise
Value has been positive
since 2007.
With this increased confidence and
expectation, there has been a significant
uptake in major strategic moves being
made. In particular, companies are acquiring
and divesting businesses, and partnering,
to re-focus their portfolios and operations
for accelerated growth. This is evidenced
by a record year of deal making in 2014 4.
Figure 1. Future Value (FV) shifts back to positive for the first time since 2007
Future Value and Enterprise Value ($ billion) for Pharmaceutical Group Studied (2007-2014)
$88.4
$80.2
$88.5
$83.5
$66.9
$83.5
$70.3
$1,770
$971
$1,306
$1,157
$1,094
$1,421
$1,204
$1,322
$1,116
$1,560
$1,359
$1,705
$1,606
-13%
$77.3
$1,735
$1,776
+31%
$1,229
$335
FV/EV =
-$63
-$217
-$206
-$331
-$411
2007
2008
2009
2010
2011
2012
2013
25.6%
-5.8%
-18.0%
-18.5%
-26.9%
-30.2%
-6.1%
Enterprise value (EV)
Net Operating Profit Less Adjusted Taxes (NOPLAT)
Current value (CV)
-$99
$41
November
2014
+2.3%
Future value (FV)
Note: 16 pure play biopharma companies only. Japanese companies have March year end (YE13 = Mar-14). Constant USD FOREX used from Oct-14. Oct 31st share price used in latest EV and
TTMQ4-14 NOPLAT. EV = MCAP + Net Debt, CV = NOPLAT / WACC, FV = EV – CV.
Source: Accenture Research, December 2014.
4 | Turning science into value
2
Return to growth is predicted but polarized
between High Performers and the rest
Our analysis shows that after four years
of negative revenue growth, the peer group
studied is poised to return to revenue growth
beginning in 2016 with a 2.3 percent CAGR
between 2015 and 2019 (see Figure 2). That
expected revenue growth is primarily fueled
by the High and Near High Performers who
have a 4.7 percent average 2015-19 CAGR
compared to just 1.1 percent for the rest
of the peer group. As shown in Figure 3, the
growth is polarized between the High and
Near High Performers with 3-8 percent
2014-17 CAGR versus the rest of the peer
group (Moderate Performers and Low
Performers) with (2)-3 percent 2014-17 CAGR.
The High and Near High Performers are
keeping up with or exceeding the global
pharmaceutical market forecast growth of
4-7 percent from 2015 through 201911.
The peer group studied
is poised to return to
revenue growth beginning
in 2016.
Figure 2. The return to growth forecast
Total Revenue and Earnings Growth for Pharmaceutical Group Studied (2008-2019E)
13.1%
+2.3%
$429
$450
7.7%
7.0%
5.3%
$462
$464
$454
$450
$448
$440
4.8%
2.8%
$454
$469
$487
3.1%
3.5%
3.8%
2016E
2017E
2018E
$502
3.1%
0.4%
-2.3%
-2.3%
-0.8%
-2.3%
-1.5%
-3.9%
-1.7%
2014
2015E
-6.9%
2008
2009
2010
2011
2012
2013
2019E
OPERATING MARGIN:
32.1% 32.7% 36.0% 35.0% 35.0% 32.9% 32.0%
Group revenue growth
Group earnings growth (EBITDA)
Group revenue ($B)
Total Peer Group Revenue and Earnings (NOPLAT) in USD at constant FOREX is analyzed—meaning larger companies performance does skew trends
Source: Source: Accenture Research based on Capital IQ January 2015.
5
Figure 3. High Performers are pulling away from the pack in terms of future growth prospects
High Performance Business Score December 2014* Versus Group Revenue Forecast CAGR (2014-17)
8%
Novo Nordisk
7%
High Performers
6%
Astellas
5%
Amgen
4%
4 Year
Growth
Forecast
(CAGR
2014-17)
BMS
Novartis
Roche
3%
Near High Performers
2%
1%
Average Performers
0%
-1%
-2%
-3%
Low Performers
1.0
1.5
2.0
2.5
High Performance Business Score*
*Based on seven year performance methodology
Source: Accenture Research, December 2014.
6 | Turning science into value
3.0
3.5
4.0
3
Capturing the value of innovation is stretching
margins and the markets’ capacity to pay
Operating margins have been falling for the
last two years with industry core EBITDA/
revenue down three percentage points to
32 percent in Q3 2014 (see Figure 2). The
operating margin6 at a majority of the
peer group companies studied (11 of the
16 companies) fell over the last two years.
There continues to be a wide range of margins
across the peer group companies studied.
In addition to slipping operating margins,
there is also the issue of affordability.
Current forecasts estimate that developed
markets12 will spend an additional $125
billion on pharmaceuticals between 2014
and 2019. This is 34 percent less than
the $190B12 analyst growth forecast
for recent and upcoming NME launches
over the same period (see Figure 4). With
most of the forecasted spending on NME
Prior to the peak of the patent cliff in 2012, launches coming from developed markets,
earnings growth was exceeding falling
the gap between predicted spend growth
revenue growth with companies engineering and analyst forecasted NME growth is
margin improvement through operating
particularly wide when considering the
efficiency programs. This trend was reversed significant economic and demographic
after the patent cliff, as companies consciously pressures on health budgets. Payers and
stepped up investment in late-stage
governments will continue to seek greater
development, prepared for new launches
savings from generics, since their drug
and invested in transforming their strategy spending as a proportion of total health
and operations in the face of falling
spending is already creeping up. However,
revenue growth.
reimbursement is continuing to shift to
those new products that differentiate most
clearly on patient health and economic
outcomes, as payers seek to further control
drug spending growth.
For example, the Hepatitis C space has seen
intense price negotiations with AbbVie and
Gilead vying to form partnerships with
payers as they try to demonstrate the best
balance of patient outcomes and affordability.
Meanwhile Germany’s Health Technology
Assessment body IQWIG has made recent
(separate) judgments finding Gilead’s Zydelig,
Bayer’s Eylea and Bristol-Meyers Squibb’s
Daklinza13, as well as several newer diabetes
drugs, have not provided incremental benefits
in target indications. These challenges
are making these companies’ cases for
reimbursement and premium pricing with
payers much more difficult.
Figure 4. The affordability of new product launches
There is an estimated
$65B gap between the
projected growth for
spend on pharmaceuticals
in developed markets
and sales forecasts for
recent and upcoming
NME approvals.
Developed Markets Pharmaceutical Spend Growth Versus Recent & Upcoming New
Molecular Entity Launch Forecasts
$190B
Pharmaceutical
Spend as %
Total Health
16.2%
Expenditure
2014
17.3%
Upcoming Launches
$65B
2019
$125B
$91B
Recent Launches
$99B
Developed Markets
Pharmaceutical Net Sales*
Recent & Upcoming New
Molecular Entity Launches*
2014-19 $ Growth Forecast
2014-19 $ Growth Forecast
There will be new launch winners and losers
in the battle to command a share of fixed
healthcare funding growth in increasingly
crowded and price-competitive therapeutic
categories. In this climate, successfully
bringing new products to market will require
pharmaceutical companies to develop
new operating models that can turn new
science into realized value.
*Developed Markets is defined as US, CA, JP, SKor, SP, IT, FR, GY, IT - Pharma Market Spend forecast is extrapolated from IMS
forecasts Nov-14. Forecast growth of Recent & Upcoming launches is based on Evaluate Pharma consensus forecasts for First
Introductions 2010-19E. Estimates of Pharma spend as a % THE are taken from Economist Intelligence unit and are based on
Retail pricing.
Source: Accecnture Research, January 2015.
7
4
High Performers are focusing on building dominant
growth positions and reshaping operations
The rapid improvements in growth forecasts
for the High Performers9 reflects their ongoing
commitment to a strategic focus on bringing
innovative new science to market in key
growth therapeutic areas. However, it also
reflects their ability to do so in a cost effective
way that clearly delivers improved patient
outcomes for specific patient segments. The
High Performers are outperforming their peers
by driving structural and operational change
that helps them keep up with the fast pace
of innovation by developing new commercial
and operational capabilities. This adaptability
is essential given the high cost of innovation
and the need for commercial launches to
realize their anticipated potential and offset
recent falls in operating margins. The wave
of M&A and restructuring sweeping the
sector is indicative of the rest of the industry
following the success of the High Performers.
Several operational attributes and capabilities
are distinguishing High Performers:
High Performers distinguish
themselves on five important
metrics:
Higher proportion of growth
forecast to come from recent
and upcoming launches15 as a
percentage of revenue
1. Collaborating to get the best science
and breakthrough speed to approval
and launch.
2. Transforming their organizations by
leveraging partnerships, acquisitions,
divestitures and asset swaps.
3. Developing new business models
in response to the consumerization
of healthcare.
4. Mastering flexible pricing and
market access while demonstrating
superior outcomes.
Higher average five
year revenue forecast5
CAGR
2015-2019
2016
6.5%
High
Performers
4.7%
1.1%
1.3%
Rest of
peer
group
27.3%
Rest of
peer group
Higher average
operating margins6
27.7%
Rest of
peer group
33.4%
High
Performers
Higher five year forecast
replacement revenue ratio10
average (ability to replace
revenue lost to patent
expired drugs)
3.0
1.7
Rest of
peer group
High
Performers
33.1%
High
Performers
Higher average sales
forecast for NME launches
five years after launch14
High
Performers
Rest of
peer group
7.1
NME
launches
$0.4B
Sales
8 | Turning science into value
5.3
NME
launches
$1.1B
Sales
1
Collaborating to get the best
science and breakthrough
speed to approval and launch.
Collaboration means a commitment to finding, partnering and developing the best external
and internal science, wherever it arises—academia, biotech or other pharmaceutical
companies. This includes having processes to expedite early decision making on choosing
the best drug candidates and responding to regulatory changes with strategies to more
rapidly and successfully bring differentiated products to market in areas of significant
unmet clinical need. Examples include:
• Bristol-Myers Squibb (BMS) is forming partnerships that blend the strengths of its leading
immuno-oncology drugs with other companies’ existing and investigational cancer drugs
to explore enhanced efficacy and expanded labels. For example, they have partnered
with Seattle Genetics’ Adcetris to explore several blood cancer therapies and have other
immuno-oncology partnerships with Incyte, Eli Lilly, Novartis, Celgene and Pharmacyclics.
BMS’s strength in the immuno-oncology field stems from its acquisition of Medarex,
part of its “String of Pearls” externalization strategy.
• Roche has partnered with 23andMe to access anonymized Parkinson’s disease patient
records and has partnered with Foundation Medicine to access proprietary cancer
genetic-screening technology to enhance the specificity of Roche’s early-stage research.
• Amgen has several notable partnership deals including a strategic collaboration with
Kite Pharma in next-generation Chimeric Antigen Receptor (CAR) T-cell immunotherapies
and a collaboration with AstraZeneca covering five Monoclonal Antibody (MAb)
inflammatory programs including anti-IL-17 MAb Brodalumab in psoriasis.
• BMS and Merck both used the FDA’s breakthrough therapy designation to accelerate
their development programs which led to successful approval of the first PD-1 inhibitor
cancer immunotherapies in 2014 in melanoma. Both are now in a race to investigate the
efficacy of their drugs in expanded labels, including lung cancer.
2
Transforming their organizations to focus on growth,
leveraging partnerships,
acquisitions, divestitures
and asset swaps.
High performers have been transforming their business through strategic deals in recent
years. Acquisitions, divestitures and partnerships, both large and small, have sharpened
their focus and differentiation in high growth segments. They have also committed to
continuous operational change to meet the demands of investing for growth. Examples include:
• Novartis underwent a large scale refocusing through a three-way asset swap deal with
Eli Lilly and GlaxoSmithKline in 2014. This enabled them to refine their focus to three
growth segments. At the same time, they announced operational efficiency plans to
generate more flexible funding for innovation.
• BMS acquired Medarex in 2009 which leapfrogged it into the cancer immunotherapy
field and divested diabetes to AstraZeneca in 2014.
• Astellas entered into a large partnership with Medivation in 2009 to co-develop and
co-commercialize novel androgen receptor antagonist Xtandi in prostate cancer. They
are continuing to develop the drug for expanded labels.
• Amgen acquired Onyx in 2013 gaining access to an exciting oncology pipeline and
portfolio, including fast growing Kyprolis approved in multiple myeloma. Amgen also
signed a strategic alliance with Astellas that year to provide new medicines to help
address serious unmet medical needs of Japanese patients. It also struck a partnership
with AstraZeneca’s biologics arm Medimmune in 2012 to jointly develop and commercialize
its clinical-stage inflammation portfolio.
9
3
Developing new business
models in response to
the consumerization
of healthcare.
High Performers demonstrate mastery of new channels geared towards the changing needs
and behavior of healthcare professionals and patients. Technology-enabled healthcare
professionals increasingly require on-demand information and support to accompany their
patient interactions and prescribing decisions. Similarly, patients’ appetite for information
and support is almost insatiable—for example, disease information, access to online
communities and support groups, financial assistance and medication adherence advice.
High Performers have become trusted and value-adding information partners through
digital channels and are moving well beyond the pill to provide additional services and
technologies that will help make their products accessible and contribute to improved
outcomes at scale. Examples include:
• Novartis has established a joint investment company with leading wireless investor
Qualcomm Ventures where a $100 million investment will support early stage technologies
that “go beyond the pill” and assist Novartis in capturing data on the right medicine for
the right patient. Novartis also has a partnership with Google that explores measuring
patients’ glucose levels via smart contact-lens technology, as well as a partnership with
Avella Specialty Pharmacy that offers GlowCap adherence technology to oncology patients.
• Roche recently signed a five year agreement with PatientsLikeMe’s global online patient
network, to explore real world experience and incorporate patient insights into decision
making. Roche has also recently signed a partnership with Qualcomm Ventures to use
remote patient monitoring and management to advance chronic-care management using
connected therapies that improve patient engagement and outcomes.
4
Mastering flexible
pricing and market access
while demonstrating
superior outcomes.
High performing companies bring a portfolio of flexibly priced products tailored to specific
patient segment needs. They also carefully plan their development strategies to yield robust
outcomes data clearly differentiating their health economic value in defined patient segments
relative to the current standard of care. On top of this, they provide a range of patient
services that help patients and healthcare professionals realize these outcomes in practice
and at scale. This more focused approach is accompanied with financial assistance that
together maximize accessibility and value to payers.
• Astellas and BMS secured reimbursement recommendations from the UK Health
Technology Assessment body NICE for its cancer drugs Xtandi and Yervoy by providing
a patient access arrangement and discounted pricing in specific patient groups.
• Novo Nordisk initiated the Cities Changing Diabetes program, partnering with Houston,
Mexico City and Copenhagen, to better understand the driving forces behind the
epidemic of diabetes and obesity in urban populations and to develop and share
prevention and management strategies.
• Several pharmaceutical companies have real-world data partnerships with health insurance
companies. Boehringer Ingelheim recently partnered with WellPoint and HealthCore to
study the long-term health economics of novel oral anticoagulants (NOACs), looking for
gaps in care and best practices to improve quality and cost of care.
10 | Turning science into value
Conclusion
Since our study in January 2014, confidence has continued to
return to the sector as a result of innovative new drug approvals
on the rise. Investors continue to reward the best differentiating
science, particularly in specialty areas of the market. New sciencedriven launches are today capturing more attention from investors
than emerging markets despite the continued double-digit growth
forecasts in the latter.
While growth is expected to come back in
2016, it continues to be polarized between
a group of High Performers who have great
science innovation and the capabilities to
differentiate new launches with payers, and
the remaining peer group, which struggles
at various points in returning to sustainable
growth. However, this innovation-driven
growth boom comes at a cost and eyes will
soon again be back on sliding operating
margins and delivering on launch expectations.
Sustained high performance in the sector
will come from those companies that can
drive operational change that keep pace
with innovation. The challenge ahead will
be turning science into value by developing
new operating models that can deliver on
the commercial promise of new launches in
a changing healthcare economy.
Research notes and sources
8 Express Scripts 2014 Drug Trend Report. Per
member per year spending trends, unit cost inflation
running at 13.2%, with Speciality drugs running
at 25.2%.
1 Industry Enterprise Value (EV) is calculated as
the sum total of Market Capitalization and Net Debt
for each company across the peer group. Current
Value (CV) is calculated as Net Operating Profit Less
Adjusted Taxes divided by Weighted Average Cost
of Capital (WACC), totalled across each company in
the peer set.
2 41 New Molecular Entities (NMEs) were approved
by the FDA in 2014, the highest level since 1996.
3 Industry Future Value (FV) is calculated as the
difference between Industry Enterprise Value and
Industry Current Value (CV), based on a total of 16
pure-play Biopharmaceutical companies studied.
4 Accenture Research analysis of Announced Life
Sciences M&A deal value in 2014, based on Capital IQ.
5 Group Revenue Forecasts are sourced from Evaluate
Pharma Jan-15. The Average position is shown for
High and Near High Performers vs Average for the
rest of the peer group.
6 Core EBITDA margin trailing 12 months to Q3
2014, and two year change versus trailing 12
months to December 2013.
7 Developed Markets Pharmaceutical Net Sales
growth IMS Health Nov-14, and forecast growth of
recent and upcoming NME launches EvaluatePharma
Jan-15 (see fig. 4 and note 14. for detail).
9 High Performers are defined as having a
performance score greater than one standard
deviation above the peer-group mean. Near High
Performers have a performance score greater than
0.3 standard deviation above the peer-group mean.
10 Replacement Revenue Ratio is calculated as the
estimated sales growth from patented marketed
products divided by estimated sales lost to patentexpired products (including those products whose
patents expired in the year in question). Only
“defined products” have sales lost to patent expiry
estimated—that is, those with a defined patent
expiration date and sales estimates in Evaluate
Pharma’s database. They represent the majority
but not all sales of marketed products, and exclude
smaller undefined products. Replacement Revenue
Ratio is considered a good directional indicator of
pipeline-driven growth over time, measured at an
industry and company level.
11 IMS Health November 2014 Report Global
Outlook for Medicines.
12 According to IMS Health definitions, developed
markets are Germany, France, the United Kingdom,
Spain, Italy, Japan, South Korea, the United States,
and Canada. IMS Health November 2014 forecasts
for developed-market growth are extrapolated and
adjusted to net sales levels. The Economist Intelligence
Unit forecasts for pharmaceutical spend as a
percentage of total health expenditures are used.
Comparison is made to Evaluate Pharma forecasts
for growth from recent (2010-14) and upcoming
(2015-19) NME launches. The comparison is not
precise, since methodologies differ slightly, but
considered to offer a directionally valid comparison.
13 Iqwig decisions on Daklinza (https://www.iqwig.de/
en/press/press-releases/press-releases/daclatasvir-forhepatitis-c-added-benefit-not-proven.6460.html)
and Zydelig (https://www.iqwig.de/en/press/pressreleases/press-releases/added-benefit-of-idelalisibis-not-proven.6516.html)
14 NMEs as defined by FDA (excluding plasma
expanders and imaging agents). High and Near High
Performers are not launching more NMEs but are
expected to achieve greater sales from those they
are launching. High Performers averaged 5.3 NME
launches in 2010-14, versus an average of 7.1 for the
rest of the peer group, but have a higher average sales
forecast at five years after launch (High Performers
average $1.1B versus $0.4B for the rest).
15 5 year Sales growth forecast 2014-19, for recent
(2010-14) and upcoming (2015-19) NME launches,
as a % of 2014 Group Rev, based on Evaluate Pharma
Jan-15.
11
Contact Us
Anne O’Riordan
Global Life Sciences Industry
Senior Managing Director
Accenture Life Sciences
[email protected]
Andrea Brueckner
Managing Director, EALA
Accenture Life Sciences
[email protected]
Thomas D. Schwenger
Senior Managing Director, North America
Accenture Life Sciences
[email protected]
Author
Philip J. Davis
Head of Healthcare & Life Sciences Research
Accenture Research
[email protected]
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About Accenture’s High
Performance Business
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Accenture embarked on its High Performance
Business Program in 2003. We have studied
thousands of companies across multiple
industries and industry segments and come
up with definitive answers regarding business
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High Performers.
About Accenture’s High
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Accenture’s study of the Biopharmaceutical
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world over an eight year period. Collectively
these companies had $444 billion in aggregate
revenue, representing more than half the
global pharmaceutical market by net sales.
The results have been compared with our
2014 and 2013 studies (based on trailing
12-month Q3 2013 and year-end 2012
financials, respectively) to identify relative
movements in the performance rankings.
The analysis pro forma adjusts for the
impact of major M&A deals and removes
the impact of exceptional costs to reveal a
normalized picture of ongoing core business
operations. A detailed analysis of historic
financial performance averaged over 1, 3, 5
and 7 year timeframes is combined with
consensus analyst forecasts to gain a forwardlooking global picture of forecasted revenue
growth from portfolio and new product
launches as well as to gauge the impact
of patent expirations and mature products.
About Accenture
Life Sciences Practice
Accenture’s Life Sciences group is dedicated
to helping companies rethink, reshape or
restructure their businesses to deliver better
patient outcomes and drive shareholder
returns. We provide end-to-end business
services as well as individual strategy, digital,
technology and operations projects around
the globe in all strategic and functional areas—
with a strong focus on R&D, Sales &
Marketing and the Supply Chain.
We have decades of experiences working
hand-in-hand with the world’s most
successful companies to improve their
performance across the entire Life Sciences
value chain. Accenture’s Life Sciences
group connects more than 10,000 skilled
professionals in over 50 countries who are
personally committed to helping our clients
achieve their business objectives and deliver
better health outcomes for people around
the world.
About Accenture
Accenture is a global management consulting,
technology services and outsourcing
company, with approximately 323,000
people serving clients in more than 120
countries. Combining unparalleled experience,
comprehensive capabilities across all
industries and business functions, and
extensive research on the world’s most
successful companies, Accenture collaborates
with clients to help them become highperformance businesses and governments.
The company generated net revenues
of US$30.0 billion for the fiscal year
ended Aug. 31, 2014. Its home page is
www.accenture.com.