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(upbeat music)

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- [Narrator] During the 2023

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J.P. Morgan Healthcare Conference,

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BCG held a panel on the
future of innovation

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moderated by Managing Director

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and Senior Partner Romney Resney.

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Hear what senior executives
from Medtronic, Merck,

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Casdin Capital, and
Goldman Sachs had to say.

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- Over the past ten years, as we just saw,

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we've seen an explosion
of innovation outside

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of large health care companies,
but today the majority

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of clinical assets in the pipeline

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are not in the hands of
big pharma companies.

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More than 60% of the top
selling drugs in 2021

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were discovered outside of pharma labs.

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Innovation is happening
across the ecosystems.

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- [Narrator] Medtech
companies are positioned

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to be the orchestrators of the ecosystem,

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connecting the various pieces

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to improve care delivery end-to-end.

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- So medtech, I think, is at
the center of the innovations

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that change the therapies
and the diagnoses

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of disease, that rather
than thinking solely

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about the medical device or the technology

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and how that interfaces with the physician

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or the hospital system,

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there's more of a
centeredness on the patient

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and because of that there's
a need to really establish

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those connected networks of information

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to improve outcomes for patients.

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- [Narrator] Large biopharma companies

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also play a key role in innovation.

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They are partnering and collaborating

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with small biotechs and AI companies

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to develop cutting-edge
therapeutics and vaccines.

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- We start with science, right?

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Is there a compelling scientific approach

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and does that scientific approach allow us

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to intervene and address
a high unmet medical need?

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The second is we need to look
at what our portfolio needs

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and does this opportunity fit
into the broader portfolio?

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And third,

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of course is their line of
sight to value creation.

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- [Narrator] The pace of
innovation is accelerating

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and regulators are racing to catch up.

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- I think innovation is moving so fast

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whether it's biologics or AI or devices.

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I don't think the regulatory agencies

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can actually keep up
with the transformation.

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And I think, but the
patient demand is there.

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- [Narrator] Payers also have a role

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in creating an environment that
is conducive to innovation.

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- Payers are looking at new innovations

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from the framework of what's
the value that's provided.

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They're looking for high-cost

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areas where there's an unmet medical need.

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- [Narrator] From what we've heard today,

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2023 promises to be a
great year for innovation.

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- I think if you actually
parse through the data

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it's not all doom and gloom.

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There is capital available.

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That capital is available to,

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I would argue, higher quality
teams, higher quality assets.

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There's a lot to be optimistic about

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as we turn the page on the new year.

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(upbeat music)