61% expect an
economic recovery
SURVEY SNAPSHOT
Nothing returns to normal without life sciences. Tasked with charting a sustainable road to recovery for both the industry and the global economy at large, life sciences CFOs feel confident about the pivots they made in crisis and are optimistic for growth in 2021.
2021 Life Sciences CFO
Outlook Survey
The Road to Recovery
R&D investment on the rise
Interest in partnerships and collaborations increases
Digital transformation cited as top strategy for growth
Building resiliency into supply chains becomes crucial
Outcomes-based contracts with providers uptick in popularity
Doubling Down on R&D
While investments in non-COVID-19 areas of R&D slowed over the past year, life sciences organizations have shown immense agility in reallocating resources effectively, efficiently and at scale to meet greater pandemic-
driven need.
30%
have already rerouted resources to COVID-related research
in 2021:
plan to increase
R&D spending
69%
plan to invest in
cell therapy
57%
plan to invest in wearables
plan to invest in immunotherapies
56%
While the pandemic’s toll on health and the economy has been massive, it has also fast-tracked opportunities for meaningful collaboration, innovation and expansion throughout the industry.
Opportunities Abound
As COVID-19 continues to highlight vulnerabilities on an international scale, life sciences CFOs are focused on building greater resiliency and agility into their supply chains.
Identifying alternative / backup suppliers
61%
Supplying the Future
Conducting a supply chain risk assessment
57%
Investing in supply chain technology
54%
Bolstering inventory of select drugs or devices
50%
Supply chain shifts
The 2021 BDO Life Sciences CFO Outlook Survey polled 100 CFOs at biopharmaceutical, pharmaceutical, biotech, medical equipment and supplies manufacturing, and physical, engineering and life sciences subsectors with revenues ranging from $250 million to $3 billion in September 2020. The survey was conducted by Rabin Research Company, an independent marketing research firm, using Op4G’s panel of executives.
Methodology
TYPE OF LIFE SCIENCES ORGANIZATION
Survey Respondents
ANNUAL REVENUE
In the last six months, life sciences CFOs say their organizations have experienced:
company type
57%
LEARN MORE
BDO'S TAKE
While the prioritization of COVID-19 R&D is expected to continue until effective products are commercialized, a significant bounce back of R&D investments outside of pandemic-related research is expected in the new year.
BDO'S TAKE
In 2021, a focus on efficient, sustainable and value-based transformation—and financing—will be key. As organizations seek the scale, scope and speed to operate in today’s environment, they must focus on driving digital agility, improving patient outcomes and fostering transparency to prove efficacy to investors and the public.
BDO'S TAKE
To minimize regional and country-specific impacts to sourcing and production processes, life sciences organizations should consider geographical diversification of their supply chains. However, as international operations may be disrupted by ongoing or emerging policy moves at the federal level, CFOs must carefully consider trade and
tariff implications.
Methodology
Survey Respondents
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