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An environment of relentless challenge and change is the norm for pharmaceutical and life sciences companies. Despite critical need and high demand for its products, the industry remains under pressure from physicians, patients, payers and regulators to deliver more effective treatments at lower cost. Its current business model, based on development and marketing of blockbuster drugs, is increasingly economically unsustainable and operationally unsuited to the kind of quick action needed to meet complex stakeholder demands.
Growth opportunities inherent in change
Yet the future holds promise:

  1. The ramp-up of personalized medicine and increasing number of biologic products in development portend growth for the industry.
  2. Delivery of targeted, specialty medicines to selected groups of patients should improve outcomes and boost profitability.
  3. Rising populations and personal incomes in emerging markets have the potential to broaden the customer base in untapped and underserved regions.

Industry transformation inevitable
To seize these opportunities, the industry must embrace a fundamentally new approach to doing business. It must adopt transformational business models that rely on diversification and collaboration with healthcare payers, providers and nontraditional partners. The goal: to deliver bundled product-service packages of patient-centered, outcomes-based care.


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