As we wind down the year, like most, there's a bit of reflection. The Life Sciences Industry Solutions Group has made great strides in developing a cross divisional, world wide team looking to share ideas for the greater good of Emerson. We continue to learn from the past, appreciate the present and are aggressively preparing for more good things to come.As we look at the past, we can't help but survey the change that has occurred in the industry. Innovation has softened the sting of the FDA with technologies like PAT and methodologies such as ASTM E2500. There has been a tremendous amount of consolidation, particularly over the past couple of years - Roche-Genentech, Pfizer-Wyeth, Merck-Schering etc. Much of this and continued consolidation can be tied to decreased patent years and the need to maximize profits. Disease profiles are becoming more demographically specific resulting in fewer blockbusters and smaller batches. To say the least, 2010 will close out a remarkable decade of change. Here's a great video from CNBC highlighting some of the past years seminal events while touching on expectations for the future.
There was an interesting report by Peter Benesh in the December 28, 2009 issue of Investors Business Daily. He talks about Big Pharma righting its ship as Big Biotech struggles to win the Street's approval. Big Pharma has realized fairly solid gains in 2009 (e.g. Roche up 12%, Merck up 22%, Sanofi-Aventis up 24%) while the 5 biggest biotechs have not ( e.g. Genzyme down 27%, Gilead down 16%). One reason, he points out, is because they face the same problems that hit pharma in the last several years, specifically, the need to manage costs with limited pipelines. Pharma has adjusted largely through acquisitions and huge mergers. With the value of patent expiration in biotech estimated to be $15 billion in the next five years, Big Biotech will need to adjust accordingly. The (sort of) good news is the absence of a regulatory framework to approve follow on biologics, known as biosimilars. Benesh points out that US regulators have not figured out what standards must apply for a generic maker to claim its version is similar enough to the original work as advertised.
Looking ahead, government-run healthcare will continue to take center stage. Lots of implications to be sure. Segmentation will continue and consolidation will undoubtedly persist. The need for flexibility, more for less, and implementing projects faster positions Emerson to preserve a leadership role in the future. We have the capital, a profusion of smart people, and an integrated ISA 95 approach and architecture that brings the field level, the process control level, as well as the manufacturing execution level into place with one integrated database.
Here's to a great 2010!
