Pharma CEOs and Digital leaders with a long-term view are well advised to focus their digital investment on clinical operations, in order to help free up resources for true innovation.
Average deal size is up, based on large deals announced by:
Some commentators suggest that the US corporate tax cuts of 2018 are one reason. That may partially explain a short-term spike. But pharma M&A and BD&L activity is on a long-term upward trend. And as a recent McKinsey article correctly highlights, this trend is mostly driven by the fact that large pharma companies are increasingly seeking innovation externally. But the article is silent as to why is that the case. All else being equal, why are large pharma companies, with all their resources, know how, KOL relationships and therapeutic area expertise, at a disadvantage compared to new start-ups, when it comes to developing innovative medicines? One interesting – but mostly overlooked – root cause is to blame for that.