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Pharmaceutical industry in midst of sea change, report says
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Pharmaceutical companies are advised to work on more health care solutions rather than focus on a single product, according to an industry report.
Multinational drug companies are relying less on sales of blockbuster products and shifting more focus towards the outcome of the products, Ernst & Young said in its annual Global Pharmaceutical Report.
Both public and private payers are trying to work out a way to control health care expenditure growth, giving opportunities to drug companies to come up with more sustainable business models.
Multinational pharmaceutical companies need to change their business models since the patents for a number of blockbuster products are expiring, which will allow other firms to introduce similar drugs at cheaper prices. The R&D cost of such drugs is also extremely high.
Ernst & Young's report said some pharmaceutical companies are considering focusing on personalized medicine for a targeted group of patients rather than trying to sell medicines to a large number of patients.
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