Pharmaceuticals Overview - Ernst & Young - United States

How can you manage your company through the recession and position yourself for growth? After interviewing thousands of life sciences executives, we identified some overarching themes. From managing risks to improving capital allocation, we reveal the lessons that could mean the difference between surviving and thriving in the new economic environment.

As industry regulations become more stringent, government and private insurers are placing unprecedented pressures on life sciences companies to demonstrate value for the products they develop. Not surprisingly, this challenge topped the list of the 10 most pressing risks facing the life sciences industry in 2009. Read the press release and report for steps which can be taken now to address top risks.

As the pharmaceutical industry undertakes a major overhaul of the traditional business model, supply chain optimization and operations effectiveness to “right-size” the business have become an important part of that change. Particularly relevant in this economic climate, we examine a number of challenges in supply chain management (pdf, 104kb) from a variety of perspectives including tax effectiveness, regulatory compliance, cost improvement, risk management, product distribution and safety.

As the financial crisis continues its impact on the global marketplace, what are the challenges and opportunities facing pharmaceutical companies in the emerging markets? (pdf, 400kb). This engaging topic was discussed during Ernst & Young’s Global Pharmaceutical Center’s recent launch of our annual report, Progressions, in Brazil, Mexico, Japan and China. Read insights from our discussions with pharma industry leaders in each country.

In this issue of our quarterly, Life science insights, we explore the current dynamics of the global financial crisis (pdf, 384kb) and its impact on the life sciences industry, the emergence of risk evaluation mitigation strategies (REMSs) mandated by the Food and Drug Administration and the deregulation of pharmacies and over-the-counter medications in Europe. Read our perspective on these topics and their impact on our ever-changing industry.

A perfect storm — today's credit crisis, a looming recession and changing dynamics of the healthcare market — is accelerating transformation of the pharmaceutical industry. The Global Pharmaceutical Center examines this theme in Progressions — Executing for success: powering new business models. The report features findings of a major global survey of senior pharma executives on pressure points, business model challenges and CFO role in industry transformation.

To request your copy, contact your local Ernst & Young professional or email progressions.pharma@ey.com.

As Washington changes direction, many question whether reform policies will present new opportunities or risks for the pharma, biotech, and medtech sectors. Watch our webcast to hear the views of industry leaders, including Billy Tauzin, President of PhRMA, Jim Greenwood, President of the Biotechnology Industry Organization and Brett Loper, Senior Executive Vice President, Government Affairs from AdvaMed.

Pharmaceutical companies following US GAAP should now defer and capitalize non-refundable, advance research and development (R&D) payments until goods are delivered or services performed. Download this “Prescriptions” article for a summary of guidelines issued by the FASB Emerging Issues Task Force regarding accounting for advance payments for goods or service (pdf, 56kb) to be used in future R&D. We also comment on implications.