Why Drug Companies May Soon Become Health Technology Companies

The convergence of technology and life sciences, changing consumer behavior, and increasing pricing pressures on drug and device makers are forcing these companies to rethink business models and how they derive value from their products, according to a new EY Progressions 2018 report. The report argues that life sciences companies will no longer be able to rely exclusively on product-centric innovations, which face diminishing returns as health systems wrestle with cost constraints. We spoke to Pamela Spence, EY global life sciences industry leader, about the report, what a growing trend in collaborations between technology and healthcare companies may say about where the industry is heading, and why the future of life sciences companies may be as health technology companies.