2023 Industry Outlook Identifies Cybersecurity Preparedness, ESG Investment and Increased Deal Activity as Key Trends for 2023
WASHINGTON, Jan. 05, 2023 (GLOBE NEWSWIRE) -- FTI Consulting (NYSE: FCN) today announced a new survey and report, U.S. Healthcare & Life Sciences Industry Outlook 2023, that found more than two-thirds (70%) of U.S. healthcare and life sciences companies reported experiencing a cyber attack or incident during the last 12 months with malware/ransomware (31%) and phishing (27%) emerging as the most common incident types. Forty-two percent of respondents also reported that they consider their company to be vulnerable to future incidents in the coming year.
From November 18-30, 2022, FTI Consulting’s Digital & Insights team within the Strategic Communications segment surveyed more than 250 decision makers working in corporate communications, investor relations, public affairs, business development and marketing for healthcare and life sciences in the United States to understand the key trends and challenges facing the industry.
“Cyber attacks are plaguing nearly every industry, but they can have an even more detrimental effect when the healthcare and life sciences industry is targeted, given the sensitive patient data that could be compromised and the potential patient-care impacts from subsequent operational disruptions,” said Robert Stanislaro, a Senior Managing Director and Head of the Healthcare & Life Sciences’ Corporate Reputation offering within the Strategic Communications segment at FTI Consulting. “Companies that do not have a plan in place to address these attacks, should they occur, significantly increase the risk to their business from a reputational, financial and legal standpoint.”
The survey also found that while nearly 9 in 10 respondents (85%) expressed some concern about the economic outlook for the industry and what it could mean for investments in the industry over the next 12 months, nearly two-thirds (63%) of respondents expect M&A activity to be strong in 2023. Further, 53% say IPO activity in 2023 will be higher than in 2022.
Given the results of the U.S. midterm elections and the divided government in 2023 and beyond, it is not surprising that the political landscape is a large area of interest for industry leaders. Respondents are fairly divided on the Biden administration’s expected impact on the industry in 2023 (56% positive, 35% negative).
Environmental, social and governance (“ESG”) efforts continue to be a major area of focus for the industry, with 60% of respondents expecting budget allocations for ESG strategy, programs and reporting to increase in the coming year. The top three ESG challenges the industry faces are the availability and quality of relevant data (32%), a lack of expertise/resources (24%) and a generally risk-averse culture against disclosure (22%).
Ensuring greater diversity and inclusion also remains a priority for the industry — both from an internal and external perspective. According to the survey, 57% of respondents think diversifying company boards is important and should be prioritized. In addition, eight in 10 respondents agree that diversity in clinical trials will continue to be equally important alongside safety and efficacy over the next 12 months.
To review the full survey report, please visit here.
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 7,500 employees located in 31 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $2.78 billion in revenues during fiscal year 2021. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalized and independently managed. For more information, visit www.fticonsulting.com and connect with us on Twitter (@FTIConsulting), Facebook and LinkedIn.
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Source: FTI Consulting, Inc.