Global Pharma Industry: In Need of a New Business Model?
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Code :BSM0023
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Region : Global
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The Hollows behind the Halos Analysts observe that the trouble for the pharma companies has been self-inflected. They have fallen prey to their own successes, by failing to recognise the inbuilt dangers in their business models. Big Pharma companies traditionally concentratedmore on theirmarketing and administrative efforts,while analysts opined that pharma companies do not need marketing at all.Hugemarketing expenditures raised the operational costs of the companies and in turn increased the cost of their new drugs. In 1990,Marketing and Administration accounted for 36%of the sales revenue, which remained above 30%throughout the decade... Developing the Right Business Composition As a first step towards the better way of doing business, it was observed, the drug companies would be better off outsourcing the primary stages of developing new drugs. Early stages in developing a new drug can be done in any part of the world and onlywhen any newmolecule arrives the stage of clinical trails, drug companies can join the development process. Big drug firms are looking for a shift in their initial research to lower-cost places. For example, GSK (Glaxo SmithKline), has tied up with Ranbaxy Laboratories, a leading Indian drug firm, for conducting basic research... |
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