A first-of-its kind comparison of the business risks confronting six key European industries revealed that the biopharmaceutical sector faces the highest level of risk and economic uncertainty.
The study conducted by Deloitte and commissioned by Janssen, compared six industry sectors: the biopharmaceutical industry, commercial aircraft manufacturing, the automotive industry, consumer electronics, food manufacturing and generic pharmaceuticals.
Key findings from the study confirm that while high levels of risk and uncertainty exist across a number of industries, the biopharmaceutical sector faces the highest level of uncertainty across the entire value chain.
Among the reasons for that uncertainty: The extended amount of time required to take a product from initial inception to market launch; high research and development intensity, the high amount of investment needed to bring each product to market –– the biopharmaceutical industry faces the risk of complete failure at all stages of the R&D process. Studies have shown that nearly one-third of molecules that make it to phase III trials fail to achieve market access.