Get details on some of the emerging exposures facing today's life science companies and how to manage them in our advisory, "Innovation and Global Competition Add Risk to Life Sciences Industry".
In an industry based on innovation, life science companies face ever-evolving risks. New technologies and treatments come to market every year, continually reshaping medicine and health care. Each new development and discovery, however, brings not only the potential to improve people’s health and lives, but also new exposures, from cyber vulnerabilities to supply chain and regulatory risks. These exposures are amplified by the increasingly global nature of the life sciences industry.
As new drugs and devices transform the industry, the business landscape remains in a perpetual state of flux as start-ups develop new approaches and larger companies seek to acquire smaller firms with the most promise. Life sciences deals can reach into the tens of billions of dollars as companies position themselves to remain competitive in the multinational arena.
For companies that rely on suppliers in many countries, supply chain risks can prove formidable, while those that market and develop products internationally need to realize that their regulatory risks extend across borders.
Nearly two-thirds of pharmaceutical firms surveyed had experienced serious data breaches, according to a 2015 Crown Records Management survey.
While the eventual success or failure of a product is not an insurable risk, companies can obtain coverage for financial injury stemming from errors or omissions that require a trial to be repeated, which can cost millions or even tens of millions of dollars.
As businesses expand across borders, they should seek an insurer that can provide the coverage and services that help make sure their risk management strategy responds to the current and emerging risks they’re likely to face.