In recent years, pharmaceutical services have evolved from a nascent high-growth market to an established active market with sustained and significant growth year over year. Several macro trends have impacted pharmaceutical services in the past and are expected to continue, including advanced modalities and increased trial complexity. Additionally, 2023 will present intriguing new opportunities and challenges as the macro situation remains uncertain, point solutions mature and biopharma customers become more sophisticated. The current macroeconomic environment will cause customers to be more conscious of containing costs across the value chain, which offers both opportunity (e.g., for solutions with clear business cases) and challenges (e.g., for nascent, less-proven solutions). Pharmaceutical services will continue to offer a favorable, high-growth environment with strong opportunities for leading organizations able to offer interoperable, flexible solutions that work to bridge the gap from point solutions to broader workflows. Trends highlighted in these materials are particularly meaningful for management teams and investors as we enter the new year.
Rapid growth in the pharmaceutical services industry has increased the complexity of biopharma operations in the manufacturing, research and commercial spaces while driving new best practices, such as requiring ecosystem interoperability. The increased scale of pharmaceutical services companies’ solutions has made their value proposition stronger as a partner to drive cost efficiencies and optimize operations for effective R&D, scale-up/manufacturing and ultimately a successful drug launch.
The overall macroenvironment offers significant opportunity for organizations to demonstrate the value of their solutions to biopharma and overcome the inertia of legacy ways of operating, akin to how COVID-19 enabled more rapid adoption of decentralized solutions recently. These dynamics have helped foster rapid growth and a robust M&A landscape. Coming out of this period of growth, experimentation and solutioning, we expect to see five key trends impact the industry, with an overarching focus on internal and ecosystem-wide interoperability (see Figure 2).