Opportunities and challenges of expanding in the global life science market
Globally, the outlook for the life science market is bullish, with double-digit growth expected in markets outside the U.S. like Russia, India and China. That’s because of increased merger and acquisition activity, innovation, organic growth and most importantly, the fact that people are living longer in developing nations and demanding a higher quality of life and healthcare, says Mark Stehr, a partner in the Life Science Practice of Deloitte & Touche LLP.
We’re also seeing a trend in collaborations between medical companies that would traditionally never work together, creating more opportunity in these markets, Stehr says in an analysis of the risks and opportunities in expanding your healthcare company outside the U.S.
But some of the markets with the greatest growth potential in life sciences are also some of the most corrupt markets in the world, and dealing with third-party intermediaries, which are essential in helping navigate these complex markets, can prove to be a challenge.
“It’s really, really hard to figure out who the good guys are in some of these markets,” says David Hodgson, the global leader of Life Sciences Practice for Enterprise and Risk Services at Deloitte. “And by good guys I mean those guys who understand and adhere to typical Western ethical standards and practices.”
To find the good guys, find a structured way of deciding who you want to do business with, plan in advance and screen TPIs before signing on with them so you can identify problems early. Learn more about expanding life sciences overseas in this clip.