Since 2019, Model N, in partnership with Dimensional Research, has set out to uncover trends and executive perceptions toward revenue management within the life sciences and high-tech industries. The resulting 2024 State of Revenue Report uncovered that data is playing an increasingly more important role in helping life sciences companies optimize revenue and ensure compliance in the wake of the ever-changing market and regulatory environment.
Data opportunities abound
Nearly all of pharma (97%) and medtech (98%) executives use external data sources to drive revenue-related decision-making. However, only 4 in 10 life sciences executives classify their organizations as being very data driven. Perhaps that’s because the life sciences industry continues to grapple with data accuracy and data management. Customer and membership data is of particular concern, with 50% of executives dealing with accuracy issues. Given that incorrect membership information can have substantial revenue and compliance ramifications, this is an area where life sciences organizations will want to improve.
Ongoing supply chain challenges
Supply chain issues continue to affect both sides of the life sciences industry; however, medtech organizations are feeling more pain than their pharma counterparts. Nearly two-thirds of medtech executives named supply chain as a key concern for 2024, compared with only 42% of pharma executives.
Also capturing the attention of life sciences executives is customer demand. Half of pharma and medtech executives listed customer demand as one of their top concerns for the year.
Pharma: regulatory changes top of mind
The pharma regulatory landscape, unfortunately, isn’t getting any easier. New mandates and legislation continue to pose administrative and compliance challenges. This year, 50% of pharma executives are bracing for a significant impact on their revenue as a result of the Inflation Reduction Act (IRA), and another 44% expect the specific IRA provision of Medicare’s ability to negotiate drug prices will have at least a minor impact on their organizations.
Medtech: the collaboration conundrum
Field sales and operations teams are both critical to the medtech sales process. But these two groups are struggling to find ways to collaborate effectively. Only two out of five medtech executives classify the level of collaboration between sales and operations as excellent – which means customers could be exposed to slow quote turnaround times, incorrect pricing, and inefficient communication. Clearly, medtech companies must find ways to bridge this gap.
Along with these topics, the State of Revenue for Life Sciences webinar dives into the key themes impacting the life sciences industry and where executives see opportunities for improvement. Watch the State of Revenue for Life Sciences webinar on demand to get the full story. And don’t forget to download your copy of the 2024 State of Revenue Report.
