For this study, Horváth surveyed executives from all over the world who work in companies in the life sciences industry in the first quarter of 2024.

The reason for the positive mood: those responsible firmly believe that volume growth (over 75%), new product launches (over 80%) and cost efficiency measures are having an impact. In particular, they are focusing on a leaner administrative structure. Almost 50% of respondents see this as an opportunity to increase profits, the report states. Another popular measure is the renegotiation of supplier contracts. Around 40% see an opportunity here. Further efficiency potential lies in the widespread energy-saving programs. Almost 60% of those surveyed are already implementing these; a further 25% have already decided on corresponding measures.

"With the decline in inflation, the optimism in the life sciences sector, which has never really been lost, is also receiving a new boost," says Philipp Temmel, partner and head of Life Sciences at Horváth. "The current focus is on growth and expanding the product portfolio as well as reducing administrative and material costs. However, companies should not ignore co-operations and partnerships. They offer great potential, especially in the technology sector," Temmel added.

Increasing Regulation, Digitalization and Cost-Cutting Measures

According to the results of the survey, managers currently see regulation as the biggest challenge for their companies. 90% expect the authorities to intervene more in the market. This is 25 percentage points more than in the previous year. "Companies have to place a further focus on market access, pricing and effectively addressing the market – both organizationally and in their approach to doctors and patients," says Oliver Freese, co-author of the study. A further 80% believe that the introduction of digital innovations will revolutionize the market and business models. In addition, a similar number of respondents expect a strong impact from reduced healthcare budgets due to public austerity measures. Two out of three companies are preparing for further challenges in their global supply chains.

The study also shows which priorities executives have set themselves for 2024. First and foremost are the promotion of employee engagement and new work models. This is followed by cyber security and improving cost and profit structures. Digital transformation also plays an important role, ranking fourth on the list of priorities.

"Generative artificial intelligence is a game changer for the entire value chain of the life sciences industry," says Marco Maisenbacher, another co-author of the study. "For example, AI offers great potential for accelerating research and development or commercialization. Those who utilize these opportunities early on can gain a significant competitive advantage."