Tomorrow’s challenge is to develop new medicines that can prevent or cure currently incurable diseases. Today’s challenge is to get to tomorrow – and that’s a tall order in itself.
Rising customer expectations: The commercial environment is getting harsher, as healthcare payers impose new cost constraints on healthcare providers and scrutinise the value medicines offer much more carefully. They want new therapies that are clinically and economically better than the existing alternatives, together with hard, real-world outcomes data to back any claims about a medicine’s superiority.
Poor scientific productivity: Pharma’s output has remained at a stable level for the past decade. Using the same discovering and developing processes, there’s little reason to think its productivity will suddenly soar.
Cultural sclerosis: The prevailing management culture, mental models and strategies on which the industry relies are the same ones it’s traditionally relied on, even though they’ve been eclipsed by new ways of doing business.
What decisions should you make to successfully launch into 2020? In some respects, pharma’s never had it so good. The tools to develop remarkable new medicines are materialising, demand for its products is escalating and trade is getting easier. Collectively the mature markets generate 59% of the total revenues but they are becoming more difficult places where to prosper. They are demanding better outcomes as a precondition for paying for new medicines. Financial pressures have played a part in hardening healthcare payers’ policies. Crushing demographic and epidemiological factors have compounded these economic woes.
- The global pharmaceutical market could be worth nearly $1.6 trillion by 2020
- Demand for medicines is rising rapidly in the growth markets
- The middle class is expandin
- Big pharma’s using four strategies in the growth markets
- New forms of medical intervention are in the pipeline
- The context in which pharma operations has changed dramatically