Medical Affairs Excellence: Budget Trends & Outsourcing

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Understanding how to fully deliver value within the Medical Affairs function is a challenge many leaders are facing. In today’s ever-changing healthcare landscape, leaders are constantly adjusting their budgets and outsourcing as the Medical Affairs function continues to grow in importance.

From comparing our recent Medical Affairs consortium to our previous primary research on trends in the Medical Affairs’ function, we found the following key findings in relation to budget & outsourcing trends.

  • Medical Affairs Resources: Within the Mature Markets segment, 60% of companies plan to grow their Medical Affairs budget, with ½ forecasting greater than a 10% increase. Similarly, 67% of the Emerging markets participants plan to grow their budget, with ½ also projecting increases of greater than 10% in resource levels.
  • Outsourcing: On average, both Mature and Emerging markets companies’ outsourcing expenses are growing compared to 2012. Mature market outsourcing notched up from 18% of all Medical Affairs activities in 2012 to 19% in 2013. Emerging markets outsourcing grew at a brisker pace, with 21% of Medical Affairs activities outsourced in 2012 versus 29% in 2013.
  • Budget Growth: 45% of respondents said their budget increased from 2011 to 2012, but the benchmark class was more tempered in their expectations from 2013. In 2009, over 1/3 of the benchmark class was growing at a rate of greater than 10%. While 45% of pharma expects their budget to grow in the next year, ½ of the medical device segment predicts their budgets to stay the same next year.

From our research we found that companies have turned to outsourcing within the Medical Affairs function in order to meet work demands amid flat or slow-growing budgets. Likewise, forward-looking biopharmaceutical executives are beginning to evaluate Medical Affairs operations & budgets to ensure they operate effectively in the current environment.

One Response to Medical Affairs Excellence: Budget Trends & Outsourcing

  1. Janie R says:

    Nice posting. These tips are really tremendous . I think it would be effective for all.Thank you for sharing with us. keep it up.

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