As in other sectors, this progress is driven by the
\nbreakthroughs made elsewhere in the high tech
\nindustry. The interaction of these two universes has
\nresulted in major advances in the treatment of some
\nconditions.<\/quote>
\n Biotech, immunotherapy and medtech are
\nall new disciplines that are taking the place of
\nconventional medicine and research and are evidence
\nof the recent disruption to healthcare and the life
\nsciences. \u201cThis development is dictated by cost and
\ndemand considerations\u201d<\/em>, summarises Estelle M\u00e9nard,
\nAssistant Head of Thematic Management at CPR AM.
\n\u201cHealthcare spending is on an unsustainable path due to demographic trends and the ageing of the population\u201d<\/em>.
\nIt accounts for 10% to 12% of the GDP of OECD
\ncountries on average. In the US, this figure reached
\n17.8% in 2015, in other words $3,200 billion. The cost
\nof drugs alone amounts to $315 billion on this market,
\nrepresenting 9.8% of total healthcare spending. \u201cWe
\nare gradually changing mentality, explains MarieH\u00e9l\u00e8ne
\nLeopold, a healthcare and pharmaceuticals
\nanalyst at Amundi. The idea is no longer to prescribe
\nmore drugs; on the contrary, the focus is on avoiding
\nrepeated treatments by improving the quality of
\nhealthcare and the effectiveness of drugs\u201d<\/em>. The
\nprogress made in recent years has been aimed, along
\nthese lines, at developing a more personalised, and
\ntherefore less expensive, healthcare system. The
\ncurrent disruptive forces are also redirecting
\ntraditionally \u201creparative\u201d medicine towards a more
\npreventive approach.<\/p>\nThese development focuses are attributable to several
\nfactors. First there is the exponential increase in usable
\ndata, also known as big data.
\nMore information is
\nbeing gathered thanks to the emergence of large-scale
\nplayers, following the consolidation of the healthcare
\nsector, and the expanding of social security cover.<\/quote><\/p>\nIncumbent laboratories have also stepped up their
\ncollaboration with more innovative biotech companies,
\nwhose development is focused more on the processing
\nof these data. The quantitative and qualitative
\nimprovement in the information gathered has finally
\nresulted in more sophisticated analysis. These
\nsignificant advances in research have allowed
\nlaboratories to concentrate on disease prevention.
\nData can also be analysed more quickly. Thanks to the development of artificial intelligence and algorithms,
\nand to connected objects\u2019 ever more finely tuned
\nsensors, diagnoses, and therefore the prescriptions
\ngiven as a result, have considerably improved. A year
\nago, for instance, BioFire (Biom\u00e9rieux) made a
\nremarkable achievement by launching a test that is
\nable to detect whether a case of meningitis is viral or
\nbacterial in less than an hour. <\/p>\n\u201cGenerally speaking, the digitisation of the sector now
\nallows the monitoring of individuals\u2019 health in real time
\nand the prevention of chronic conditions such as high
\nblood pressure, summarises Wesley Lebeau, the
\nmanager of the CPR Invest \u2013 Global Disruptive
\nOpportunities fund. The goal is to achieve better
\nforesight and to management treatments accordingly\u201d<\/em>.
\nThe range of possibilities, encompassing algorithms,
\nconnected objects and data processing, is such that IT
\ngiants such as Google and Apple now have a large
\npresence in the healthcare field and have recently
\nsigned agreements with big laboratories.<\/p>\nThe quality of the care given is also a feature of the
\ncurrent shake-up. Whereas in the past the use of a
\nbroad-spectrum antibiotic was a prerequisite before
\nadministering the right molecule, the process has now
\nbeen simplified. The advances made in research by
\nbiotech companies, especially when it comes to
\ntargeted therapies, are in this way significant. For
\nexample, \u201cHerceptin can now be used to treat a specific
\ntype of breast cancer that had one of the highest
\nmortality rates just ten years ago\u201d<\/em>, says Marie-H\u00e9l\u00e8ne
\nLeopold. Other fields than immuno-oncology have also
\nbeen truly revolutionised in the last few years, such as
\ngenomics and microbiota. The potential benefits are
\nhuge and are whetting the appetites of the big
\nlaboratories. This is the case for Roche, which
\nconsiderably expanded its portfolio of products, and
\npatents, by taking over the company Genentech in
\n2009.<\/p>\nAs \u201cdisrupted\u201d healthcare is simpler, faster and more
\neffective, it above all meets cost control needs. \u201cThe
\nsolutions offered by biotech companies are still
\nexpensive, acknowledges Marie-H\u00e9l\u00e8ne Leopold. But
\nnew technologies, such as the 3D-printing of tissues, are being introduced to reduce their cost\u201d<\/em>. Pressure on
\nlaboratories\u2019 R&D budgets and the explosion of
\navailable data are at the same time improving research
\nproductivity. Some estimates put the savings at around
\n5% of expenditure on the US market, in other words
\n$20 billion.
\nMore generally, digitisation could reduce
\nboth the total cost of approved drugs, which currently
\nstands at $2.6 billion, and also increase the number of
\nthese drugs.<\/quote>
\n \u201cWhereas on average, over the last ten
\nyears, 28 drugs were given the go ahead by the FDA
\neach year, this figure could rise to 33, or even higher,
\nthanks to digitisation\u201d<\/em>, says Marie-H\u00e9l\u00e8ne Leopold. The
\npossibilities offered by disruption are all the greater as
\nthe healthcare sector is vast.<\/p>\n\u201cOur approach is based on five sub-fields\u201d<\/em>, explains
\nWesley Lebeau. \u201cBiotech, medtech, immunotherapy, ehealthcare,
\nlife sciences and diagnostics\u201d<\/em>. The CPR
\nInvest \u2013 Global Disruptive Opportunities fund therefore
\nindiscriminately covers both pure players and
\nincumbent laboratories that are reinventing
\nthemselves in order to take part in the revolution
\nunder way.<\/p>\n
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