Pharma 2020: The vision

Download Pharma 2020: The vision: Which path will you take? (711kb)

Which path will you take?

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 for one fifth of global pharmaceutical sales. Further, incidence of chronic conditions in the developing world will increasingly resemble those of the developed world.

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.

Some of the major changes PwC anticipates for the industry are:

• Health care will shift in focus from treatment to prevention.
• Pharmaceutical companies will provide total health care packages.
• The current linear phase research & development process will give way to in-life testing and live licensing, in collaboration with regulators and health care providers.
• The traditional blockbuster sales model will disappear.
• The supply chain function will become revenue generating as it becomes integral to the health care package and enables access to new channels.
• More sophisticated direct-to-consumer distribution channels will diminish the role of wholesalers.

Pharma 2020: Virtual R&D, the second in the series explores opportunities to improve the R&D process. This paper proposes that new technologies willenable the adoption of virtual R&D and by operating in a more connected world, industry, in collaboration with researches, governments, healthcare payersand providers, can address the changing needs of society more effectively.

Pharma 2020: Marketing the future, the third in the series discusses the key forces reshaping the pharmaceutical marketplace, including the growingpower of healthcare payers, providers and patients, and the changes required to create a marketing and sales model that is fit for the 21st century.

Pharma 2020: Challenging business models, the fourth in the Pharma 2020 series, this report explains why Pharma's fully integrated business models may not be the best option for the pharma industry in 2020 and why more creative collaboration models may be more attractive. The paper also evaluates the advantages and disadvantages of the alternative business models and how each stands up against the challenges facing the industry.