Emerging Business Models in the Pharmaceutical Industries ...

Short Term Strategies – The Semi Block Buster Model
Block Buster to Semi Block Busters
The block buster approach is being replaced with semi
block busters in terms of 3-4 NMES replacing the 1 CME
block buster. There has been a massive financial and
cultural restructuring of the Big Pharmas.
By 2008, US pharma companies will lose revenues of
close to $40 billion due to patent expirations, while
worldwide losses will amount to more than $72 billion. The
replacement will only come in the form of 80 to 100 NMEs
for the US market and 160 for the worldwide market.
In the 1980s
Markets Dominated by
One Drug
Block Buster
Source: JSB Intelligence
Evolution of Semi Blockbusters
Competitive
Fragmentation
2000
The Big Pharmas are reducing their focus areas to a few
diseases; for e.g., Abbott Laboratories has downsized its 13
areas to just five today. The Big Pharmas have to come out of
the irreparably losses of block busters. However, block busters
will continue to be the major revenue source for the coming
few years.
This will be followed by an era of “a new battlefield”, who will
focus on emerging opportunities in specific focus groups and
fragmented markets, with high value and low volume
personalised treatments.
Semi Block Busters and
Fragmented Tailored Drugs- Patient Group
Strategic Analysis of the Pharma Market, Future Revenue Models and Key Players 33