By 2020 the pharmaceutical market is anticipated to more than double to US$1.3 trillion, with the E7 countries - Brazil, China, India, Indonesia, Mexico, Russia and Turkey - accounting around one fifth of global pharmaceutical sales. Further, incidence of chronic conditions in the developing world will increasingly resemble those of the developed world. But Pharma 2020: The vision - Which path will you take? indicates that the current pharmaceutical industry business model is both economically unsustainable and operationally incapable of acting quickly enough to produce the types of innovative treatments demanded by global markets. In order to make the most of these future growth opportunities, the industry must fundamentally change the way it operates.
Over the past decade, pharmaceutical and life sciences companies have entered a difficult period where shareholders, the market and regulators have all created significant pressures for change within the industry. From thinning pipelines and skyrocketing operating costs to calls for lower prices and a greater regulatory burden, the industry is confronting unprecedented challenges that are expected to radically transform the business. Biotechnology companies also face increasingly tougher choices about product development strategy, funding sources, collaboration arrangements and the competition for talent. To overcome these challenges, the industry will require a bold vision and leaders who have the willingness to embrace a fundamentally new approach to their business.
PricewaterhouseCoopers holds the view that despite tremendous demand for its products, the industry's current business model is both economically unsustainable and operationally unsuited to act quickly enough to produce the types of innovative treatments that will be demanded by global markets. In our report, Pharma 2020: The Vision, we state that, to flourish, companies will need to invest more in research, understand and demonstrate the value of their products, lower the cost of distribution, collaborate with partners at home and abroad, and provide value-added services to their customers. Though these and other changes that lie ahead are daunting, we believe that the rewards both in terms of human health and business success are enormous.
Our firm has extensive experience working with organisations across the industry, including: proprietary and generic drug manufacturers, specialty drug makers, medical device and diagnostics suppliers, biotechnology companies, wholesalers, pharmacy benefit managers, contract research organisations, and industry associations. We have made a deep commitment to understanding the forces affecting our clients' operations and have aligned our practice with the market to ensure that our people are deeply knowledgeable about the relationships that suppliers have with providers, payers, regulators and patients.
Whether you are an emerging company seeking venture capital to fund research or advice on a collaboration to commercialize a product, or an established company looking to improve or expand operations, you can count on our insight and experience to find the best approaches to achieve your financial, operational and strategic objectives.
Pharma 2020: The vision - Which path will you take?