Patent cliffs have long been a feature of pharma, causing tectonic market shifts as revenues disappear, and putting incumbents to the test. As BCG recently reported, the current cliff is of a magnitude not seen for 20 years - potentially affecting $150 billion of revenue through to 2027.ⁱ

Doing more with less

Meanwhile, pricing pressure continues to intensify. BCG report that over the last 10- and 5-year periods, the share of companies with falling margins has jumped to over 50%. Beyond a traditional focus on pipeline mechanics, and with rising R&D costs, systemic efficiency is becoming a priority.

Many of our global clients are duly reorganizing to improve cost structures and process synergies. Relocation to lower-cost production centers was once a clear route to profitability. Now, geopolitical tensions and ESG scrutiny are forcing the opposite - reshoring to higher-cost locations.

AI is a great enabler. And still underused.

Much of the response to these two forces lies in a third one: AI. For one thing, it can dramatically shorten early‑stage drug development. Processes that once took 3 to 4 years can now be completed in 18 months.

GenAI is projected to deliver $53 to $95 billion in annual value across the pharmaceutical value chain. But only 22% of Life Sciences leaders are scaling it.ⁱⁱ

Historically insular, the sector now needs new models, thinking, and skills. Securing them will require deliberate effort from candidates and hiring organizations. Integrating technology into core scientific and operational processes has game-changing potential. It requires algorithmic understanding, skilled prompting, interrogating the results, and designing strategies for wider automation. All while keeping abreast of FDA and EMA guidelines.ⁱⁱⁱ

Here is the problem: few scientific leaders possess AI expertise. Talent from outside the pharma industry can provide it. Some firms are already looking across sectorial borders. Others are hesitating. When a new executive lacks both industry and scientific experience, the apprehension is understandable: in sales, operations or marketing roles, industry knowledge is critical. But in technology, digital, logistics and human capital, external talent has distinct added value.

Blended teams: incompatible molecules?

Blended teams – part AI, part science – are an elegant solution. But without a shared understanding, the model will only create friction. How smoothly it evolves depends on culture. The C‑suite must embrace openness and the ambiguity that arises from a fast-changing technology. Without this, the engine will stall. And incoming executives must give themselves every chance of being heard.