Focus Magazine - Summer 2014 - (Page 50)

5 QUESTIONS Tim Sosbe 5 Questions With... Nigel Brooksby L ife sciences is a rapidly evolving field. With so much changing so quickly, how can we be ready for tomorrow's challenges? I recently spoke with Nigel Brooksby, chairman of the United Kingdom Life Sciences Board and a former senior leader with companies including GlaxoSmithKline, Pfizer and Sanofi, about where we go from here. Nigel Brooksby, chairman of the United Kingdom Life Sciences Board Tim Sosbe (TS): You've talked about 20002010 as the "decade of doubt" for life sciences companies. What's that mean and where does that leave us now? Nigel Brooksby (NB): The "Decade of Doubt" from 2000 to 2010 destroyed more than $550 billion of value from the combined share prices of pharma companies. So what happened? To start, there was a 60 percent increase in R&D spend, from 10 percent to 16 percent of sales. In spite of this uplift, there was no increase in productivity. In fact, the economic return dropped from 13-15 percent in the 1990s to 4-9 percent in this "Decade of Doubt." TS: So a transformation is needed. How are life sciences companies responding? NB: Life sciences companies responded with various strategies to transform their business models and their global organizations. Analysts and shareholders combined to put significant pressure on CEOs and boards. Heads rolled and since 2010 global headcount has been significantly reduced. R&D spend has been cut back and redirected to greater collaboration with biotechnology. In parallel, the industry has had to respond to pricing pressures as well as a shift toward emerging markets. TS: Loss of trust seems particularly important to life sciences. Can trust be regained? NB: There is a global perception that life sciences puts commercial interests above those of governments, payers, healthcare professionals and patients. This loss of trust has been felt in Europe and in China. Rebuilding trust will take sustained efforts, increased transparency and even higher levels of governance. TS: How can we contribute? NB: The industry and individual companies will need to constantly "trim their sails" to the ever-changing environment with new challenges and new competitors. It will involve five essential ingredients: 1) A reassessment of product portfolios 2) Continuous reappraisal of the commercial infrastructure 3) Acquiring talent from other sectors 4) Continued focus on R&D returns 5) A "root and branch" revision of governance standards All stakeholders will need to work together more closely to achieve one aim: Better patient outcomes at lower costs. TS: What will life sciences look like in 2020? NB: It will certainly look different. The winners will be those companies that deliver value at lower costs. There will be increased outsourcing of all functions. The focus on emerging markets will continue and there will be a rapid rise in collaboration with academia and biotechnology. R&D productivity will have to continuously improve and risk will need to be better governed and managed. I Tim Sosbe is editor of Focus magazine and editorial director for LTEN. Email Tim at tsosbe@L-TEN.org. 50 FOCUS | SUMMER 2014 | www.L-TEN.org http://www.L-TEN.org

Table of Contents for the Digital Edition of Focus Magazine - Summer 2014

Focus Magazine
From the President: Clarity, Community & Career
Table of Contents
Table of Contents
Guest Editor: Your Network and the Connection Ecomony
Front of the Room: Getting Your Head Right
Neuroscience: Neuroliteracy
Introducing LTEN: The Life Sciences Trainers & Educators Network
Communities of Practice: Learning in Action
Are We Living in a Post-LMS World?
Member Solutions: Measuring the Impact of Training
Selling as a Team Sport
From the Training Room to the Board Room
The Science of Changing Sales Behavior
Personalized Medicine: The Coming Revolution
Virtual How: Trends in Selling Models
Member News
Ad Index
Focus Contacts
5 Questions with Nigel Brooksby

Focus Magazine - Summer 2014