New Ecosystems In Pharma: Maturing Markets Mean New Models Are Needed
Success in the pharmaceutical industry requires new thinking about segmentation of drug markets and new insight into how the opportunity for pharma companies is changing. Oliver Wyman’s ecosystems framework attempts to determine where unmet medical need, innovation, and a strong value proposition for payors reside.
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Lured by the success of Abbott in rheumatology, Novartis in oncology, and Genzyme in orphan/genetic diseases, pharmaceutical manufacturers have turned their collective sights on specialist-driven markets. But payor pressure is ballooning and as examples in these hotly competitive areas demonstrate, to truly succeed in specialist markets, companies cannot rely on a ‘follower’ strategy. Instead, careful selection of indications where true innovation is possible and fostering meaningful interaction with physicians and patient communities will allow pharmaceutical companies to grow specialty franchises alongside traditional strengths.
AstraZeneca isn't the first to attempt to reinvigorate its R&D organization. But the group's pure-pharma focus means it relies more heavily than most of its peers on the success of this organizational and cultural overhaul.
Bristol has finalized its strategy to focus on biopharmaceuticals by swapping its 83% stake in Mead Johnson Nutritionals for BMS shares. The move will not raise cash but the buyback structure of the deal will improve BMS's cash flow and increase earnings per share ahead of its impending Plavix/Avapro patent cliff.