Pharma’s traditional strategy of placing big bets on a few molecules, promoting them heavily, and then turning them into “blockbuster” drugs is no longer viable in today’s marketplace. As the patents on the drugs launched in the glory days of the 1990s continue to expire, the industry is in need of a new, sustainable business model.
Increased competition from generics, a growing pressure to reduce costs, and a market in which a drug’s success is more closely tied to its performance are transforming the pharmaceutical and life sciences industry. As the healthcare industry transitions from treating existing illnesses to taking steps to prevent illness before it occurs, the pharmaceutical industry must become more selective about the diseases it addresses and consider the implications of investing in new treatment types. To survive in this new business model, life sciences companies will have to invest more heavily in genetics and genomics and revise their R&D processes to improve scientific productivity.
Medical technology firms need to prepare for an innovation makeover.
Traditional relationships in the healthcare industry are no longer adequate to succeed in a new health economy.