Business, Management, Marketing, Money, Tax, Law, People

Since 2019, the United States healthcare industry has experienced substantial financial pressure, with industry EBITDA as a proportion of the National Health Expenditure declining by an estimated 150 basis points (Exhibit 1). The decline has hit payers and providers particularly hard—payers’ estimated margins in 2024 could be at their lowest in a decade. Inflationary pressures have not yet been fully absorbed within the healthcare system, and providers continue to face…

Digital payments in the B2B arena have lagged far behind consumer e-commerce, even with the big shift to digital brought about by the COVID-19 pandemic. The vast majority of B2B payments occur between small and midsize businesses (SMBs), which are the target market for the B2B financial operations platform BILL. The company seeks to streamline and simplify SMBs’ financial operations, including accounts payable, receivables, and expense management. In addition, BILL…

Back in July 2023, researchers at the McKinsey Global Institute estimated that gen AI could unlock between $60 billion and $110 billion a year in economic value for the pharmaceutical and medical products industries, boosting productivity and innovation in domains across the industry’s value chain—from the way new treatments are discovered to how they are marketed and administered by physicians. Six months later, McKinsey experts dug deeper into those numbers,…

Life science companies have traditionally kept patients and consumers at arm’s length. Pharmaceutical, biotech, and medtech companies have viewed providers and payers, not patients, as their key customers and have rarely interacted with them as end customers. This approach has had to evolve in recent years. Consumers are now accustomed to apps and smartwatches that provide a 360-degree view of their well-being, and they engage with direct-to-consumer brands such as…

Despite dedicated efforts across the biopharmaceutical industry to streamline clinical development, clinical trials remain complex, costly, and time-consuming. These challenges are compounded by an increasingly competitive and crowded trial landscape. Yet accelerating clinical development remains crucial—not just for patients but for the enterprise. A 12-month reduction in the clinical development timeline can add more than $400 million in net present value (NPV) across a sponsor’s portfolio while delivering immeasurable benefits to…

We are in a moment of vast potential in life sciences—of diversified investments, breakthrough discoveries, and rapid expansion of therapeutics into new modalities and platforms. And AI is increasingly enabling data-driven decision-making across the product life cycle, from AI-supported drug candidate selection to real-time clinical trial site monitoring. However, overall industry productivity—whether measured in terms of speed, cost-effectiveness, or ROI—has been stagnant for decades. While there are undoubtedly multiple causes…

Amid growing complexities, escalating costs, and a heightened demand for innovative therapies, biopharmaceutical R&D organizations are under pressure to find ways to boost their productivity. Preclinical studies are increasingly using diverse assays, complex “omics” data, and humanized models to evaluate drug candidates. Clinical trials are adopting new trial designs and incorporating personalized-medicine approaches and even more end points. In this challenging environment, pharma leaders are turning to advanced technologies such…

The journey to bring new medicines to market remains long and costly, despite recent technological and process improvements in biopharma R&D. It takes about a decade, on average, from candidate nomination to launch, and study and application costs for investigational new drugs (INDs) have soared in recent years by 20–30 percent.These challenges stem partly from the growing complexity of research and early development, fueled by an explosion of data and…

Brazilian farmers have endured multiple challenges since 2023, including crop failures, commodity price declines, and intensified droughts, rain, and wildfires. The result is greater caution, with two-thirds of producers expecting profits to remain stable or decrease in 2024, according to a McKinsey survey. Rising input costs were Brazilian farmers’ main concern when surveyed two years ago, but now extreme weather events are seen as the biggest threat. And to navigate…

During the past five years, healthcare stakeholders’ expectations of sources of industry growth and profits have shifted toward alternative subsegments. For example, healthcare services and technology (HST) subsegments, which represented about $65 billion in earnings in 2023, will experience an estimated 9 percent CAGR during the next five years. By comparison, payer profit pools (about $55 billion in 2023) will have an estimated 7 percent CAGR during the same period.…