Pharma 2020: Challenging business models – Which path will you take?

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The fourth in PricewaterhouseCoopers’ Pharma 2020 series, this report explores how a pharmaceutical company's fully integrated business model may not be the best option for the industry in 2020 and why more creative collaboration models may be more attractive.

Pharma 2020: Challenging Business Models highlights how even the largest companies will have to collaborate more closely with players inside and outside the sector to in order to acquire the infrastructure required for delivering drug therapies to patients and customers. The paper suggests that alternative models will emerge that will provide a basis for the industry to operate more effectively as times change, increasingly responding to the needs of the different stakeholder communities.

The transition to a new business model will not be easy and no single model will suit every company. In order to choose the most suitable option, some key questions will need to be answered:

• What is your current business model? Does it play sufficiently to the company's strengths?
• What kind of company do you want to be and what are the implications of any change in direction?
• Will the current business model enable expansion into new markets and satisfy customers' expectations in 2020? If not, what sort of business model is needed?
• Who do we need to work with to ensure that we are able to deliver what our shareholders and stakeholders demand?
• How much change is needed and how can this be actioned as rapidly as possible?
• Do we have a clear picture of the opportunities and risks entailed by each of the available alternatives?
• Do we have a plan in place that will enable us to move forward quickly, while maximising the opportunities and minimising the risks?