Last year, I wrote a white paper on the future of the pharmaceutical industry and the key trends underpinning its revolution. Today, I decided to publish it on The Stroop!
The paper, entitled "The Underpinnings of Big Pharma's Future," can be downloaded here.
If you only have time for an excerpt, here's a piece from the Executive Summary:
The pharmaceutical industry is profoundly changing. Lackluster shareholder returns, a dearth of new drugs in the pipeline, and an abundance of patent expirations are making traditional business models obsolete. On top of this, shifting priorities between the payer, provider, and pharma in developed markets are creating entirely new industry dynamics. Finally, large opportunities in emerging markets are making Big Pharma firms think more strategically about the where they compete—and mind you, most emerging markets are ruled by generics, not patented drugs, which are the life-blood of Big Pharma.
All of these factors are working to compose a new and more complex industry—an industry that will demand new business models. The “good old days” of spending 15-20% of total revenue on Research and Development in the hope of developing one or two blockbuster drugs are gone. While the industry still possesses significant opportunity for growth and expansion, the strategy for translating the opportunity into profit looks very different.
Email any comments to thestroop@gmail.com.
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