PTI

Pharma firms need to change business model, says PwC

Tue, Nov 3 10:24 PM

Mumbai, Nov 3 (PTI) Pharma companies need to change their current integrated business model and have to collaborate with other firms to develop effective medicines more economically, a report said. "Pharma''s fully-integrated business model enabled it to profit alone for many years very successfully.

But, this model is under pressure and by 2020, it will not work," professional services firm PricewaterhouseCoopers said in a report here. The report said if the pharma industry was to improve its performance in the lab, reduce its costs, serve the emerging markets and make the transition from producing medicines to managing outcomes, it will have to collaborate with other organisations, both inside and outside.

"There is a clear economic rationale for greater collaboration. Even the largest pharmaceutical companies will have to collaborate with organisations to develop effective medicines more economically, help patient manage their health and ensure that the products and services they provide would make a difference.

" It said no pharmaceutical company would be able to "profit alone", it would rather, have to "profit together". PwC believed that by 2020, the strategy of singlehandedly placing big bets on a few molecules, marketing them heavily and turning them into blockbusters would not suffice.

"By 2020, most medicines will be paid for on the basis of the results they deliver," it said.

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