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Emerging Business Models in the Pharmaceutical Industries ...

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Overview<br />

Pharma companies are position<strong>in</strong>g<br />

<strong>the</strong>mselves on <strong>the</strong> basis of <strong>the</strong> size of <strong>the</strong>ir<br />

portfolio and R&D capabilities. Superpharma<br />

refers to <strong>the</strong> Big Pharma companies while<br />

supernet is <strong>the</strong> league of small and Big<br />

Pharma companies based on <strong>the</strong>ir<br />

market<strong>in</strong>g reach, companies are position<strong>in</strong>g<br />

<strong>the</strong>mselves as upstream or downstream<br />

companies.<br />

Companies with greater market<strong>in</strong>g reach are<br />

gett<strong>in</strong>g <strong>in</strong>to downstream drugs and pharma<br />

products. Companies with strong R&D and<br />

limited market research prefer to focus on<br />

upstream products.<br />

Patent Expiration and <strong>Emerg<strong>in</strong>g</strong> Generic<br />

Model<br />

The fight between generic and patented<br />

drugs has led pharma companies to explore<br />

new market segments for drugs with<br />

reduced R&D lifecycles. Big Pharma<br />

companies are turn<strong>in</strong>g to <strong>the</strong> network model<br />

of <strong>in</strong>-licens<strong>in</strong>g and out-licens<strong>in</strong>g to avoid<br />

problems aris<strong>in</strong>g from <strong>the</strong> expiry of patents,<br />

and reta<strong>in</strong> <strong>the</strong>ir los<strong>in</strong>g revenues. Smaller<br />

companies enter<strong>in</strong>g <strong>the</strong> generic market are<br />

try<strong>in</strong>g to claim a larger market share <strong>in</strong> <strong>the</strong><br />

North American and European markets.<br />

Dynamic Shifts <strong>in</strong> <strong>the</strong> Pharma Market<br />

Upstream<br />

vs.<br />

Downstream<br />

SuperPharma<br />

Industry Smaller<br />

vs.<br />

Classification vs.<br />

M&A<br />

SuperNet<br />

Big Pharma<br />

Bulk<br />

vs.<br />

Specialty<br />

Brand<br />

Equalisation<br />

Patents to<br />

Biotech<br />

Dynamic Shift <strong>in</strong> Pharma Market<br />

Source: JSB Intelligence<br />

Market Dynamics<br />

Patents<br />

Patent to<br />

Generic<br />

In-licens<strong>in</strong>g<br />

Vs<br />

Out-licens<strong>in</strong>g<br />

Outsourc<strong>in</strong>g<br />

Internationalisation<br />

vs.<br />

Localization<br />

Geographical<br />

Shift<br />

Parallel Trade<br />

Govt. Role<br />

Strategic Analysis of <strong>the</strong> Pharma Market, Future Revenue <strong>Models</strong> and Key Players 14

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