As reported by Fortune, the business models of large pharamceutical companies hasnt changed in decades - identify a disease that is afflicting a large percent of the population, like heart disease, find, test and patent a drug that is at least a marginal improvement on current medicines and make billions.
But the industry has changed patent protection being lost and increase competition from generic manufacturers taking large percents of market share, and despite spending huge amount on new research fewer drugs are being replaced by newer, improved versions ro replace expiring patents. This model puts pharmaceutical companies at risk of sinking billions of £’s into research only to produce nothing.
And with the Affordable Care Act preventing companies from relying upon the historic solution of small tweaks to blockbuster drugs toextending their lifetime and the patent by selling them as new treatment, a new approach needs to be adopted.
Novartis CEO Joseph Jimenez , in his interview with Fortune argues that “the definition of a blockbuster is changing” and that pharmaceutical businesses need to revinvent their business model for long term survival. His solution to this challenge is to produce more new drugs for smaller segments rather than chasing big markets taking the biological approach.
If you would like to read the full article read Fortune
If you are looking for an IT job in the pharmaceutical industry visit CK IT search