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Rebuilding Big Pharma's Business Model

Executive Summary

The blockbuster business model that underpinned Big Pharma's success is now irreparably broken: the costs of commercialization are too high and likely returns below the cost of capital. The industry needs a new approach, constructed from four inter-related building blocks--focused R&D; partnerships; customer solutions, not products; and a business unit, not functional, organizational model.

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The New Face Of Blockbuster Drugs

Blockbuster drugs are not going away but as science and market conditions continue to evolve and unmet needs shift to new territories, their profile is likely to change again. Companies can use strategies to offset the potential shortcomings of the new blockbuster model and improve their chances of becoming the successful players of tomorrow.

The New Face Of Blockbuster Drugs

Blockbuster drugs are not going away but as science and market conditions continue to evolve and unmet needs shift to new territories, their profile is likely to change again. Companies can use strategies to offset the potential shortcomings of the new blockbuster model and improve their chances of becoming the successful players of tomorrow.

Collaborating for Better R&D Productivity

Pooling multiple pharmaceutical companies' assets across a given therapeutic area will allow industry to make rational R&D investment decisions, expedite resource allocation and reduce investment in also-rans, eventually boosting productivity and improving a worsening reimbursement environment. Oncology may be a smart place to begin.

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