The Advent of Personalised Medicine: New Business Model for Pharmaceutical Companies?
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Code :BSM0026
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Fading Blockbusters Analysts observe that the trouble for the pharma companies has been self-inflicted. They have fallen prey to their own successes by failing to recognise the in-built dangers in their business models. While big pharma companies have traditionally concentrated more on their marketing and administrative efforts, analysts believe the companies do not need marketing at all as purchasing drugs, inmost cases, is not controlled by the consumer. Huge marketing expenditures raise operational costs and in turn increase the cost of new drugs. In 1990, 36% of the sales revenuewas spent onmarketing and administration, which remained above 30% till 2000. In 2003, these costs were 33%, which excluded the costs incurred on huge sales force of the US drug companies... The Rise of Personalised Medicine: The New Business Model? Historians regard the late 19th century as 'the great flowering' of medicine. With advances inmicroscopy and a deeper understanding of germs and human physiology in that period, scientists were able to identify the causes of several infectious diseases. Based on those findings, pharma companies built their businesses. Analysts believe that themedical field is on the verge of a second flowering. The new field of medicine called as pharmacogenomics and pharamacogenetics, would be based on genetic variations of individuals and would improve treatment for - everything from heart disease to cancer, depression, Alzheimer's, and autoimmune disorders - the diseases that do not have any convincing treatment under the current school of medicines... |
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