A greater use of digital health technology such as wearables and smart packaging could help the UK pharmaceutical industry ‘unlock £22bn’ over the next decade.

That value would come from a combination of potential revenue-growth and cost-savings, according to new analysis from Accenture.

The consultants say investing in digital technologies could see the UK pharma sector accelerate growth by 5%, generating an estimated £12bn in new revenue over ten years.

Companies would also consequently be able to reduce their costs by more than £11bn and pass on cost savings of 10% direct to consumers.

In addition to wearables and tech-enabled packaging Accenture highlighted the potential of analytics-based virtual screening and sensors as technology that could also help pharma tackle its ‘long-term productivity challenge’.

Yen-Sze Soon, managing director at Accenture, said: “Most pharmaceutical companies we work with recognise that digital technologies can drive transformation and growth, but many aren’t yet realising this potential. This research quantifies the potential prize for industry, individuals and society if they get this right.

“The solution is what we call Industry X.0, an action plan for embracing and profiting from technological change. More than just transforming into digital businesses, pharma companies must look at how they reinvent operating models, production and value chains.”

The company’s ‘value at stake’ model was created by Accenture Strategy and is based on the World Economic Forum own ‘value at stake’ approach to understanding the value of digital transformation, for industry and society.

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