Accenture finds an industry turnaround in 'future value'

Starting with 18 multinational biopharma companies, and then computing their enterprise value (a measure of market capitalization and net debt) as a step to a calculated future value (the difference between enterprise value and current value), Accenture Life Sciences arrives at a scoring for the industry, and top performers within it. From a -15% rating last year, the industry category has moved into a net positive future value of 2%. The Top Performer, as Accenture defines it, is Novo Nordisk, with an expected four-year growth forecast of nearly 8%. Astellas, Amgen, Bristol Myers-Squibb, Novartis and Roche are “Near Top Performers,” with growth rates in the 3-6% region. (Coyly, Accenture leaves the other 12 companies unnamed in its charts.)

It is Accenture’s contention that the top performers are distinguished from the rest by four factors:

• Collaborating to get the best science and breakthrough speed to approval and launch
• Transforming their organizations by leveraging partnerships, acquisitions, divestitures and asset swaps
• Developing new business models in response to the consumerization of healthcare
• Mastering flexible pricing and market access while demonstrating superior outcomes.

Novo Nordisk, for example, initiated a Cities Changing Diabetes program, partnering with several cities in North America and Europe, which Accenture cites as an approach to obtaining better market access while demonstrating superior outcomes.