Capitalising on market growth

The Covid-19 pandemic has proved that the global healthcare industry continues to innovate at pace.

Traditional healthcare models of delivery, engagement and execution are being reshaped by new opportunities arising from breakthroughs in science, technology, policy, and finance. These positive developments, present both challenges for existing players in the industry, and more significantly, opportunities for UDG Healthcare and its client base. 

1. Rising healthcare costs

As life expectancy continues to increase with the number of people aged over 65, making up approximately 12% of the global population, and as more advanced therapies are developed, global healthcare expenditure continues to rise and is projected to reach $10 trillion by 2022, a growth rate of 5.4%1.

2. Continued growth in pharma

Globally, the pharma and emerging biopharma industry continues to drive innovation with new launches and an expanding product development pipeline, coupled with the focus shifting towards specialty, orphan, rare, biologic and oncology drugs. The global pharmaceutical market is projected to exceed $1.5 trillion by 2023, growing at a 3-6% CAGR2.

3. Shifting disease focus

Specialty medicines spending is projected to reach approximately $500 billion in developed markets by 2023, with share of total medicine spending approaching 50% in most developed markets2. However, specialty is only part of the story and primary care remains a significant proportion of spending.

4. New science

New science will be pharma and emerging biopharmas growth engine with Next- Generation Biotherapeutics, such as stem cells and regenerative medicine, accelerating growth. Drug device and technology combination products are driving personalised care, better patient adherence, and medical cost reductions. 

5. Technology and data

Artificial Intelligence is increasingly being applied across the healthcare industry to drive efficiency, optimisation and improved decision-making. By the end of 2020, customers are expected to manage 85% of their relationships with the enterprise without interacting with a human3, with the global artificial intelligence market in healthcare expected to grow at a CAGR of 43.5% from 2018 to 2025, to reach $27.6 billion by 20254.

6. New healthcare delivery models

Healthcare is moving out of hospital and into the home and the hands of the consumer. Consumers are seeking a ‘connected’ health experience and are demanding advanced healthcare delivery models, such as wearable devices and home diagnostic kits.

7. Industry disruption

Technological disruption is transforming every aspect of the future of healthcare; from how patients are diagnosed, to how they are treated. Cutting-edge technologies are increasingly prevalent in the healthcare market.

8. Consumerisation of Healthcare

The definition of health is shifting from ‘sickcare’ to ‘well-care’, with an increased focus on the patient experience.

Divisional Specific Market Opportunities

Ashfield Advisory

Key growth drivers:

  • Increasing outsourcing penetration with growing demand for specialist advisory services
  • Increasingly complex healthcare landscape, specialty therapies and drug launches
  • Growing demand for data and informed research to improve decision-making
$2.9bn

Estimated market size*

Ashfield Health (formerly Ashfield Healthcare Communications)

Key growth drivers:

  • Growth in specialty, rare disease and orphan products leading to increased demand for education, omnichannel engagements, digital communications
  • Expansion of direct patient engagement
  • Increase in number of molecules in development and positive drug approval outlook
$7.3bn

Estimated market size*

Ashfield Engage (formerly Ashfield Commercial & Clinical)

Key growth drivers:

  • Increasing outsourcing penetration
  • Demand for innovative models, omnichannel offerings and multi-country solutions
  • Increasing importance of patient support programmes and engagement to improve adherence and outcomes and support of complex patient journeys
$6.1bn

Estimated market size*

Sharp Commercial

Key growth drivers:

  • Increasing outsourcing penetration
  • Increase in complexity of specialty and biotech leads pharma to seek more specialised providers
  • Demand for secondary packaging of injectable products
$5-7bn

Estimated market size*

Sharp Clinical

Key growth drivers:

  • Increasing outsourcing penetration
  • Facility investments driving increasing demand across the client base for end-to-end integrated service offerings
  • Growth in specialty clinical services for orphan and rare disease patient populations
$6-8bn

Estimated market size*

* Market sizes derived from BCG, Deloitte and UDG internal analysis.
1. Deloitte 2019 Global Health Care Outlook.
2. IQVIA Market Prognosis. Sept 2018. IQVIA Institute Dec 2018. https://www.grandviewresearch.com/industry-analysis/drug-device-combination-market.
3. Artificial Intelligence In Healthcare Market-Global Opportunity Analysis and Industry Forecast (2018-2025).
4. CB-Insights Gradually_then_Suddenly_FOH_2019.