As companies in this sectors search for innovation and growth opportunities to offset the general decline in R&D productivity, they continue to look at M&A

BANGALORE, INDIA, October 12, 2015 /EINPresswire.com/ -- Stakeholders of the global life science industry need to adopt a long-term approach to strategic planning, portfolio management, and market expansion due to the extended nature of life sciences product development.

Market analysts are of the view that near-term challenges and opportunities are the areas where organizations must prepare themselves for.

The trends for the life science industry are:

Searching for innovation & growth
As companies in this sectors search for innovation and growth opportunities to offset the general decline in R&D productivity, they continue to look at M&A. As companies continue to grapple with a rapidly shifting landscape, look to grow distribution networks, and leverage previous investments, partnerships and informal collaborations will comprise an important part of the industry picture. Both horizontal and vertical M&A activity is driven by new insurance and payment models, rapidly changing consumer demographics and an explosion of technology-based treatment innovations.

Acclimating to a changing regulatory & risk environment
Product safety issues, security & privacy breaches, intellectual property (IP) tangles, inappropriate marketing practices, and corruption incidents pushed to the forefront are the regulatory challenges in today’s global life sciences sector. These are the issues that can result in government fines, product recalls, adverse media coverage, brand-recognition damage and revenue and market share losses.

Factors such as rapid change, increased scrutiny, more sophisticated risk-monitoring techniques, and coordination across agencies and regions are adding up to this complexity.

Life sciences companies will need to demonstrate that they have active and comprehensive compliance programs across their business and clinical operations, including commercial, R&D, and supply chain as the governments and regulatory bodies continue to formulate stricter norms and stricter implementation.

Preserving & building stakeholder value
The ability of the global life sciences companies to grow revenues can be limited by challenges such as pricing pressures, generics competition, margin erosion, supply chain issues, and regulatory constraints.Pressures on gross margins, at the same time, are put by factors like rising R&D expenses, marketing & sales outlays and general operating cost increases. Despite these challenges the trend is that the shareholder value of companies in this segment would continue to increase.

Fundamentals in the industry that are aligned to increase shareholder value include improvement in R&D productivity, recent increases in NME approvals, expanding product pipelines and ongoing cost containment.Stakeholder confidence would be further enhanced by operational transparency and addressing the risks and improving processes within finance & accounting operations.

For more market research reports on the Life Science Industry visit
https://literated.com/industry/Life-Science

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