The $5-7B generative AI opportunity biopharma can’t afford to ignore

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Yes, generative AI is hyped. And yes, the technology has shortcomings. But the landscape is swiftly changing. Bloomberg Intelligence estimated that the GenAI market would grow from $40 billion in 2022 to $1.3 trillion by 2032. A recent study from Deloitte Consulting estimates that for a top 10 biopharma company with $65-75 billion in revenue, the peak value that could be captured by scaling AI over 5 years is $5-7 billion.

While it is easy for individuals to dabble with the technology, quantifying the actual enterprise value for biopharma firms is often less clear. “We kept hearing the same question over and over again from the C-suite: What’s the value to my company? What’s the size of the prize?” said Adam Israel, managing director at Deloitte Consulting, and co-author of the report, “Realizing Transformative Value from AI & Generative AI in Life Sciences.”

The answer…

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Axonics, Outset lead medtech space on Deloitte’s list of fastest growing companies

Deloitte today released its “North America Technology Fast 500” list of growing companies, including a handful of medtech firms.

The list, which ranking of the fastest-growing North American companies across a range of sectors, included several “Life Sciences” outfits. Immunology company Vir Biotechnology led the way in first place on the list.

Axonics (Nasdaq:AXNX) represented the highest-ranked medical device company at No. 4. According to Deloitte, the company registered 25,401% growth over a three-year period. Axonics reported $180.3 million in revenue in fiscal 2021, compared to $707,000 in fiscal 2018.

The company topped last year’s version of the list. Axonics develops novel products for adults with bladder and bowel dysfunction. Its sacral neuromodulation (SNM) systems provide adults suffering from overactive bladder and/or fecal incontinence with long-lived, easy-to-use, safe, clinically effective therapy. The compa…

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Five steps to help medical device makers deal with semiconductor shortages

[Photo by Vishnu Mohanan]

Medical device manufacturers are increasingly pessimistic about the supply of semiconductors, according to Deloitte’s latest survey of the industry.

Some said they’ve slowed down or halted manufacturing operations after depleting their semiconductor inventories, and nearly 80% of survey respondents reporting extended lead times, with some stretching more than a year.

“More than 75% of our most-recent survey respondents said that their customers have turned to alternative types of treatment for their patients,” Deloitte’s Stephen Bradley and Bill Murray wrote in a new report. “As a result, some hospitals and health systems are looking into alternate products, new usage strategies or treatment options.”

The Advanced Medical Technology Association (AdvaMed), which continues to push for the medical device industry to be prioritized fo…

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6 startup trends from Deloitte and MedTech Innovator — and warnings for established medical device companies

The medical device industry is shifting, and startups and established medical device companies alike should prepare for key trends identified in a new report from Deloitte.

Deloitte’s Center for Health Solutions and MedTech Innovator worked together to analyze MTI’s database of approximately 1,000 applicants for MTI’s 2021 startup accelerator program.

The startups that applied had at least developed a prototype, but had not yet progressed beyond a series D round of funding. They come from 48 states in the U.S. and 43 countries.

Alva Health was named as the competition’s winner last week, but they’re not the only promising company. Of this year’s applicants, about three-quarters have raised equity funding, totaling a collective $3.9 billion. More than one-fifth of the applicants already have customers, and 9 percent have won regulatory approval.

As part of its analysis, Deloitte interviewed leaders from startups and medtech companies that could be …

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