McKinsey Global Survey: Building Consumer-Centric Ventures in Life Sciences

Life science companies, traditionally focused on providers and payers, are rapidly shifting their priorities to engage directly with patients and consumers. Historically, pharmaceutical, biotech, and medtech firms maintained limited interaction with end consumers. However, the rise of digital health tools like apps and smartwatches has empowered individuals to take control of their well-being, demanding a more consumer-focused approach. Brands like Apple Health, Hims & Hers, and Noom have further amplified expectations for accessible, personalized healthcare solutions.

In response, life science companies are increasingly launching ventures and spinouts aimed at consumer wellness. These initiatives, often less encumbered by stringent regulatory requirements, range from diet and recipe apps created by medical device firms to menopause-focused online platforms by pharmaceutical companies. The shift underscores the growing importance of patient engagement for long-term success. Companies that fail to embrace this trend risk losing market share to agile competitors and digital disruptors.

Business Building: A Strategic Imperative

Across industries, business building has become a key growth strategy. A 2024 McKinsey Global Survey found that more than half of 1,100 CEOs ranked business building as a top priority. In life sciences, interest in this approach is surging, especially in AI-driven ventures. According to the survey, 45% of pharmaceutical and medtech companies plan to launch AI or analytics-driven businesses within the next five years, up from 28% in 2023. Examples of consumer-focused initiatives include virtual health platforms and apps for managing healthcare spending.

While the opportunities are immense, launching a successful new business in life sciences is particularly challenging. Regulatory hurdles, talent acquisition difficulties, and weak go-to-market strategies frequently derail these efforts. Enthusiastic leaders often struggle with implementation, underestimating the complexity of executing consumer-centric ventures.

Keys to Success: Empowerment and Avoiding Pitfalls

CEOs who excel at business building enable their teams to innovate by granting access to core competencies, technical infrastructure, and operational resources while shielding them from excessive bureaucracy. Success also requires vigilance against five critical missteps:

1. Overreliance on In-House Regulatory Expertise
   • While regulatory knowledge is crucial, excessive dependence on internal teams can limit creativity and slow progress. Engaging external experts can help navigate complex compliance landscapes efficiently.
2. Delaying Launch to Perfect Products
   • Waiting for a flawless product can be a critical misstep in fast-moving markets. Launching minimally viable products allows companies to gather consumer feedback and iterate quickly.
3. Assuming Consumer Tech Talent Is Easy to Attract
   • Life sciences companies often underestimate the competition for top tech talent. A compelling mission, competitive compensation, and opportunities for innovation are essential to attract skilled professionals.
4. Relying on Healthcare Providers to Drive Sales
   • Consumer businesses require direct engagement strategies, as healthcare providers may not prioritize or promote these offerings effectively.
5. Underutilizing AI’s Potential
   • AI is a game-changer for consumer-centric ventures. From personalized health insights to predictive analytics, leveraging AI can significantly enhance consumer experiences and operational efficiency.

The Path Forward

As life sciences companies embrace consumer-focused strategies, they must adapt their traditional operating models to compete in a digitally driven market. Those who invest in strategic planning, foster innovation, and avoid common pitfalls are well-positioned to thrive. The future of healthcare lies in integrating patient-centric solutions with cutting-edge technology, creating opportunities for growth and improved outcomes in an increasingly competitive landscape.

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