What’s next for the pharmaceuticals industry, amid digital disruption and rapid technological advances? McKinsey’s Martin Dewhurst sat down for a wide-ranging conversation with David Epstein of venture firm Flagship Pioneering to explore ways the sector could shift in coming years. In this interview, part of our Biopharma Frontiers series on how the pharmaceutical industry is evolving and how leaders can adapt, Epstein discusses the next horizon of innovation, critical elements of an effective business, and the kind of culture he tries to foster. An edited transcript of their conversation follows.