Biotechs are facing an innovation deficit. 2023 is a landmark year for loss-of-exclusivity (LOE) and biosimilar challenges. Per Beyond Borders: EY Biotechnology Report 2023, five blockbuster drugs are falling off the patent cliff in 2023, with another seventeen products currently representing over US$145 billion in annual revenues losing patent protection over the next five years.
An eye-opening 2023 study published by Drug Discovery Today revealed that the average R&D efficiency per new drug for big pharma is a staggering $6.16 billion. Per the study, “R&D efficiency is a key indicator of how productively an R&D organization uses its allocated resources and is an indicator of how much money it takes to discover and develop a new drug.”
The crushing pressure to make up for lost revenue from LOE and to increase R&D efficiency falls primarily on the shoulders of scientists. To help them succeed, the industry needs to give them tools to do more with less.
Life science industry challenges affecting scientists
- Extreme pressure to quickly and cost-effectively bring innovative drugs to market
- R&D operations disruptions from pipeline-boosting mergers and acquisitions
- Talent shortage and high attrition rates for lab staff
- Inadequate on-hand technology to support innovation
While daunting, industry experts believe that these challenges will lead to a better overall biotech environment. Per EY, Andrew Hack, a partner with Bain Capital Life Sciences, anticipates that the current operating environment “will ultimately lead to a more efficient ecosystem of companies advancing truly innovative products… as an industry, we will come out of this as better stewards of capital, as well as disciplined organizations that will deliver more with less.”
How to help scientists deliver more with less
In the wake of resource challenges, there are two ways to stretch funds; by making dollars work harder and by spending less of them. Utilization of a lab supply marketplace, such as ZAGENO, can accomplish both. A lab supply marketplace serves as a centralized ordering hub on a single platform where scientists can go to find the supplies, equipment, and tools they need.
- Improve efficiency. Scientists waste 20% of each week on the administrative burden of lab supply ordering and tracking. By simplifying and automating the purchasing process with the use of a lab supply marketplace, scientists free up more time to actually do research. For example, utilizing ZAGENO provides an average time savings of 15% for biotechs and pharma users, through:
- Streamlining product research and purchasing
- Providing backorder support
- Simplifying approval flows
- Automating order tracking
- Reducing PO cycle time
- Reducing vendor addition cycle time
- Improving supply chain management
- Reduce lab supply spend. Experts estimate that operational costs can range anywhere from $10,000 to $40,000 per day to run a biotech lab and as much as $100,000 per day for some pharmaceuticals. A large portion of these expenditures come from lab supplies and equipment. Use of a lab supply marketplace can reduce spend by an average of 19%, by:
- Improving cost transparency with a real-time spend visibility dashboard
- Negotiating volume discounts due to better supplier spend insight
- Three-way price matching
- Optimizing of accounts payable
- Reducing purchasing and receiving errors
- Improving inventory management
At the heart of the life sciences industry is the mission to bring life-saving, life-improving drugs to the masses. On the front lines of this battle are our scientists, and they need our support. Contact ZAGENO to find out how you can help them deliver more with less.
