In Vivo is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

For Dot-Coms, First Mover Disadvantage

Executive Summary

The implications that the Global Health Exchange, the new Internet portal formed by a group of leading medical device firms, is, in some sense, now a market maker, underscores one of the clear conclusions that can be drawn from what has been a crazy year for e-health companies. Virtually everyone underestimated the power of the entrenched entities to, at once, defend their turf and develop their own responses to the Internet opportunity. B2B dot-coms burst on the scene arguing that the current hospital supply chain players had failed to do the job and that they would provide an alternative with new models for doing product procurement more efficiently--trading exchanges, for example, or on-line auctions or RFPs. But the dot-coms quickly faced a chicken-and-egg problem--no matter how ingenious their business model, customers wouldn't sign up without proof that there were suppliers on board and suppliers wouldn't join in without evidence that the site would have customers valued by both sides. This is the opening that the Global Exchange hopes to exploit, and ironically, while the dot-coms early on debated the importance of brand names and first mover advantage, it now seems clear that the ultimate advantages already belonged to those established players that the dot-coms first tried to challenge and later sought to team up with.

You may also be interested in...



A Semi-Public Utility?

In most industries, creating strong demand for products is the key to proprietary value--and the more demand, the greater the value. But in the case of both drug and Internet companies this past year, the very thing that should have created enormous value--the potential for extremely wide-scale adoption of their products--instead fostered push back when adoption threatened to become too widespread because it was too valuable for any one company to have on an exclusive basis. The tremendous importance that both pharmaceuticals and the Internet, for different reasons, have assumed in people's lives has turned what should be a proprietary asset into something closer to a semi-public utility.

Viatris Will Tread A Different Path

By merging to create Viatris, Mylan and Pfizer’s Upjohn unit intend to occupy a space between generics players and big pharma by offering a broad array of affordable products all around the world.

EU Single Patent System On Course For 2020

Progress is being made towards the implementation of the EU’s new patent system, but the UK’s insistence on severing all ties with the European Court could spell the end for its participation.

Topics

UsernamePublicRestriction

Register

IV001510

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel