Accenture finds an industry turnaround in 'future value'

Novo Nordisk is tagged as the only 'high performer'

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.