Tuesday, July 30, 2013

Challenges in the Pharmaceutical Industry - What will make change happen?

In the white paper Primary Challenges in the Pharmaceutical Industry: An Interview with Christopher Bowe, who is the is the U.S. healthcare analyst for Informa’s Scrip Intelligence, he looks at the rocky road that is challenging the Pharma industry.  In the interview, Bowe shares a few things he sees in the industry that are affecting the industry and how Pharma will grow to meet the challenges of the new business models that are facing the industry.

A few of the facts that caught my eye were:
  • - But that does not mean that its business model is ideally suited to take most advantage of emerging market opportunities. Some of the most interesting model shifts—from product divisions and portfolios to R&D structure—are starting to appear for emerging markets. Some companies see different kinds of model needs for these new markets.
  • - Even more important is that the pharmaceutical industry requires a leader with management process and management people skills like few other industries. The intersection of disciplines and people types in this industry is an interdisciplinary puzzle: from scientists, to marketers, to chemical manufacturers and engineers, to political experts, to medical doctors and the interaction within medicine, to finance, to the unique expectation of what healthcare is for each customer.
  • - For example, in the age of consolidation, most of the mergers lacked the attendant cultural change necessary to make them new, vibrant companies and organizations.
  • - Add a sudden business model adaptation to the mix, and it gets even more critical for the leader to make everyone believe that this is the future to believe in.
  • - It is diversifying the risk of development, regulation, fixed costs of labor, manufacturing, legal, pricing, customer-uptake and sales, and reputation. Eventually some of these companies could look radically different in the next 20 years.

This fall at the Clinical Collaboration Congress, many players who work across many of the different sections of clinical trials will gather to work on developing better relationships and stronger business models to move the clinical trial space forward.  Conference Chair Ken Kaitin will be on hand to present Improving the Drug Development Process through Risk-Sharing Collaborations to look at how the industry can move forward.  To find out more about this session and the rest of the program, download the agenda.  If you'd like to join us this September 25-27, 2013, in Boston, as a reader of this blog when you register to join us and mention code XP1825BLOG, you'll save 15% off the standard rate!

What is one thing you'd like to see change in Pharma companies to adapt to the evolving business models?

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