International Pharma Business - Global Pharma Market

23 developing world will increasingly resemble those of the developed world, with a significant rise in hypertension and diabetes. Many scientists also predict that global warming and rise in greenhouse gases will have a major effect on the world’s health, with the spreading of diseases such as malaria, cholera and higher prevalence of respiratory illnesses such as asthma and bronchitis.

The pharma industry will not be able to meet the challenge unless R&D productivity improves.

The Pharma Industry lacks innovation. The industry is investing twice as much in R&D as it was a decade ago to produce two-fifths of the new medicines it then produced. It is simply an unsustainable business model. The current pharmaceutical industry business model is both economically unsustainable and operationally incapable of acting quickly enough to produce the types of innovative treatments that will be demanded by global markets. Pharmaceutical companies are facing a dearth of new compounds in the pipeline, poor share value performance, rising sales and marketing expenditures, increased legal and regulatory constraints and tarnished reputations.

In the next decade, the industry must invest in research and focus less on sales and marketing.

Pharma’s traditional strategy of placing big bets on a few small molecules, marketing them heavily into primary care with the aspiration of achieving blockbuster sales, will no longer be viable. The Industry must focus on the development of medicines that prevent, treat or cure.

These must demonstrate tangible benefits and tackle unmet medical needs. Governments and payers must play their part and ensure the industry is rewarded for these efforts.�

Some of the major changes expected are: The blockbuster sales model shall be replaced by a smaller, smarter and more effective sales force, led by key account managers who will negotiate contracts based on therapeutic benefit and outcomes. The quality of value shall prevail over the quantity.

Integrated packages of medicines and services, and some services, such as personalized patient monitoring and disease management, shall be more valuable than the medicines themselves.

Emphasis on outcomes to increase. Successful companies will prove that their products really work and add value. Companies also will be financially rewarded for developing new therapies versus me-too medicines. Risk-sharing agreements will become more mainstream with drug manufacturers adjusting prices according to the results of outcomes analysis data that demonstrates drug efficacy.