Can you give us an introduction to EY's operations in Health Sciences and Wellness?
EY's Health Sciences and Wellness (HS&W) team encompasses nearly 60,000 professionals that serve biopharma medtech health payers and health provider organizations and operate as a cohesive unit, recognizing the interconnections among various stakeholders in healthcare and wellness. Our focus has shifted from helping organizations managing and treating illnesses to preventing and curing them. This includes: mergers and acquisitions, tax advice, partnership collaborations, market access, operational improvement and manufacturing excellence. We have invested heavily in leading technologies to help companies contact value based care / health outcome metrics and also Ai in expediting medical and legal review procedures to enable medicines to get to patients who need them faster. We have 13,800 Data analytics professionals now at EY who complement our sector specific teams as the amount of health data generated continues to ‘explode’ and thus the opportunity to capture value from it is ever present. Our relationship with the payer side is more audit-oriented. Our HS&W practice - in our last financial year ended 30 June 2023 - is the fastest-growing industry segment within EY, reflecting both the market opportunity and the team’s focus on delivering exceptional client service.
As an observer of the pharma and wellness industry, what unique challenges do these sectors face, especially in terms of commercialization and reimbursement?
The pharma and wellness sectors face significant pressures, particularly regarding affordability and the complexity of reimbursement processes. For life sciences companies, commercial success now depends not only on product innovation but also overall cost-effectiveness and the ability to secure reimbursement. The challenge of reimbursement is increasingly becoming a major hurdle, surpassing the traditional focus on clinical efficacy. This is compounded by the need to navigate value-based care, which varies among stakeholders in the health ecosystem. For biopharma companies, accessing and utilizing data outside their traditional scope is essential to demonstrate the value and effectiveness of their products. This need for external data and mutual collaboration for data analysis presents a significant challenge. Moreover, companies must navigate the intricacies of selling their products at a sustainable reimbursement rate to ensure the viability of their innovations.
What is your perspective on the public perception of the cost of drug development and the pharmaceutical industry's approach to pricing and access?
Public perception of the pharmaceutical industry varies widely. Those who have benefited directly from treatments often have a positive view, regardless of cost. However, there are some that expect free access to healthcare and can sometimes view the industry negatively when these expectations aren’t met. The high cost of bringing a drug to market, sometimes unsuccessfully, is a crucial factor that many may not fully understand. This cost is a necessary part of ensuring that medicines are safe and effective. While there may be a perception by some that pharmaceutical companies are excessively profit-driven, it's important to recognize that these companies bear the risks and costs of innovation. Their ability to make a profit is essential for continued investment in new treatments. The debate over fair profit and access to medicines is complex, with stakeholders including patients, providers, payers, policymakers, and regulators all playing a role. Ensuring balanced and fair returns for pharma companies is crucial for sustaining innovation in healthcare.
What is your perspective on the impact of AI in pharma?
AI in the pharmaceutical industry is often overestimated in the short term and underestimated in the long term.
Its immediate potential lies in personalizing care delivery and enhancing efficiency in healthcare systems, which can lead to better patient outcomes and capital reallocation. While AI's role in drug discovery is more of a medium-term prospect, it's already contributing to better target identification and clinical trial efficiency. However, the expected breakthroughs in this area haven't been as rapid as some anticipated, which could be due to challenges in collaboration and integration within the industry. AI is also poised to significantly improve the efficiency of business operations in biopharma, especially in manufacturing and distribution, adapting to the need for smaller, more agile production batches. In contrast, the potential for AI to revolutionize R&D innovation remains more distant.
Has there been significant progress in diversity and inclusion within the pharma industry?
The pharmaceutical and wellness industries are gradually becoming more inclusive, which is a positive development. However, assessing the extent of progress in diversity and inclusion is complex, as there are various factors at play. While there have been positive strides made towards inclusivity, it's clear that there is still room for improvement. This area isn't one where I have extensive expertise to comment in-depth, but it's evident that the industry is moving in the right direction, albeit with some distance still to go.
What are the main challenges EY faces in its collaboration with the pharma industry over the next 5-10 years?
EY's HS&W team’s primary challenge in the coming years is equipping our people with the necessary technology skills to augment their capabilities. As technology progresses, it's crucial to ensure our people have the right training and skills to utilize these advancements effectively in supporting our clients. We're focused on nurturing in-house talent and teaming with alliance partners to strengthen our service offerings. The interconnection of talent and technology is fundamental to our approach; hence, choosing one over the other is not an option. Our strategic aim is to balance investments in both talent and technology to ensure we continue to meet and exceed the evolving needs of our clients in the pharmaceutical industry.
