Big Pharma is facing big changes. While the global pharmaceutical market is forecast to more than double in value to $1300bn by 2020, PricewaterhouseCoopers (PwC) contends that the current pharmaceutical business model is unsustainable and the industry must fundamentally change the way in which it operates if it is to capitalise on future growth opportunities.
The industry is challenged by significant decreases in revenue growth, fewer drugs in the pipeline, and blockbuster drugs coming off patent, while the cost of bringing new, innovative drugs to market is increasing. PwC contends that Big Pharma must increasingly collaborate with life sciences companies. This means that more mergers should be on the way.
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Insider's take on Big Pharma’s current strategy:
1 Price hikes in the US whenever possible
2 Pre-emption protection via the lobbyists
3 Evergreening to make up for lack of real innovation
4 Patent lengthening - both by overt and covert methods
5 A feeding frenzy for biotechs and smaller pharmas
6 Quietly (and not so quietly) “offshoring” thousands of jobs in the US to the Far East
7 “Cultivating” Far Eastern markets using standard palm greasing strategies
8 “Decruiting” US sales reps - my best guess is 20,000 will go in the next 5 years
9 Using high priced “orphan drugs” as moneymakers
10 Finally - bowing to the pressure of Wall Street and merging and consolidating!
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