Big Pharma’s Dilemma

Posted on April 8, 2008 by Dr. David Edward Marcinko MBA MEd CMP™

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Making it … Without Big Pharma

By Patrick C. Cox; Jr.

[Pharma Section Editor]

How are we going to make it without Big Pharma?

An alarming question but a very real one we nonetheless might have to face over the next few years. Look, we’ve become accustomed to Big Pharma delivering that blockbuster drug just when we need it. With patience and strong research and development, somehow we’ve all felt the drug industry would be there for us in the end. Reality is starting to set in however.

Given today’s business climate and the pressures of recent economic downturns, one must begin to ask:

Can we count on Big Pharma to be there for us at the level we’ve come to expect?

The Need Exists

Healthcare needs and consumer pressures for blockbuster compounds are certainly still there. Who doesn’t feel a sigh of relief when news of FDA approval for a product personally affecting our family or us hits the streets? One would like to think that the drug industry is primed and eager to keep the launch engines of innovation rolling, but that’s easier said than done in today’s business environment. It’s the same economics we all face.

Generic Competition Heats Up

Faced with the need to keep a lid on costs while producing dividends to attract new shareholders, there’s also the growing threat from generics. Sales and marketing expenses continue to skyrocket as companies compete for physician, and HMO, brand loyalty and dwindling patient drug dollars. Pressures are greater than ever.

The Questions:

What’s Big Pharma to do to keep delivering? What adjustments to traditional business models will it have to make? How can the industry keep giving us what we need to improve and prolong our lives while it fights just to survive?

Conclusion

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