The global pharmaceutical industry is experiencing exponential change. A mass of conflicting drivers are competing to make the prediction of value ever more complex.
1) Demographics – Demographics are pushing market potential upwards through an ageing population and the move to lifestyle related diseases in the increasingly affluent developing markets of the world.
2) Economic climate – The counter pressures are ever around us as the economic squeeze tightens. Governments are imposing arbitrary price reductions across the board and tearing up previously stable pricing and reimbursement agreements. Compulsory generic prescribing is being seen in markets previously wedded to a purely branded ethos.
3) Technology – In the face of these conflicts, the industry is facing equally challenging shifts in technology. There is a reasonable argument to say that most common diseases in developed markets can now be controlled by established therapies.
4) R&D – Where does that leave R&D with its ever decreasing productivity? New models of research include outsourcing and an increasing trend by big pharma towards using small start-up biotech companies as incubators to minimise development risk.
Orphan drugs, once a low-value niche area of business are now in the spotlight.
These issues and more are addressed in our intensive programme throughout the 3 day MBA in Pharma.
Written by: Stuart Wineberg – expert trainer for the 3 day MBA in Pharma