CVS purchasing Aetna, Amazon selling pharmaceutical and medical devices products, and JP Morgan-Berkshire Hathaway-Amazon to forming an independent healthcare company are all very interesting healthcare payer-provider transformations. All have one common theme, providing a unique cost cutting approach to rising healthcare costs.
With such a focus on healthcare cost cutting, pressure on lowering drug and device costs will not only continue but will escalate. As a result, Life Science pharmaceutical, bio-pharmaceutical, biotech and medical device companies need to retool their business and business models. Business will not be as usual. Business will be very unusual as healthcare cost pressures force changes. Life Science companies need to adopt new technologies to provide flexibility to change quickly and provide more cost effective approaches. Machine learning, predictive analysis and leveraging IoT are key strategies which Life Sciences Manufacturers need to adopt and deploy.
The key questions to Life Science companies are you ready? Does your current platform and technologies support the flexibility to change business models quickly and leverage new technologies to remain competitive?