Emerging Business Models in the Pharmaceutical Industries ...

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Introduction Bristol-Myers Squibb Company (BMS) is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of pharmaceuticals and other health care products. The company has four business segments: Pharmaceuticals, Oncology Therapeutics Network (OTN), Nutritionals, and Other Health Care. BMS employs around 44,000 people and recorded sales of $20.9 billion in the year 2003. The Pharmaceuticals segment is made up of the global pharmaceutical and international (excluding Japan) consumer medicines business. The OTN segment provides oncology products, supportive care products and related supplies to office-based oncologists in the United States. The Nutritionals segment consists of Mead Johnson Nutritionals. The Other Health Care segment consists of ConvaTec, Medical Imaging and Consumer Medicines (North America and Japan) businesses. BMS has successfully employed lifecycle management strategies to boost the revenue earning potential of some of its older products such as Taxol. Bristol Myers Squibb Revenues The increased revenues reflect continued growth in prescription demand for key brands and new product introductions. Earnings were offset by the inclusion of a litigation settlement and higher research and development expenses. The increase in revenue is primarily due to increased sales of Plavix, the Pravachol franchise, Abilify, Glucovance and Paraplatin. International sales in 2003 increased 17% to $6.5 billion due to increased sales of Pravachol, Taxol, Plavix, Avapro/Avalide, and analgesic products in Europe 25 20 15 10 5 0 Bristol Myers Revenues for Last Five Years (in billion US$) 1999 2000 2001 2002 2003 Source: Company’s Annual Reports 25% 20% 15% 10% 5% 0% Revenues Operating Profit Profit Margin Strategic Analysis of the Pharma Market, Future Revenue Models and Key Players 66
The company’s largest markets are in the United States, France, Japan, Germany, Spain, Italy and Canada. The bulk of company sales come from prescription pharmaceuticals. In 2003, worldwide pharmaceuticals sales increased 16% to $14.9 billion, reflecting a 2% price increase, a 9% volume increase, and a 5% increase in foreign exchange. Bristol Myers Squibb 14 12 10 8 6 4 2 0 United States Bristol Revenues by Geography (billion US$) BMS revenues by segment( In percentage) 8% 10% 11% Source: Company’s Annual Reports Europe, Mid-East and Africa Source: Company’s Annual Reports Strategic Analysis of the Pharma Market, Future Revenue Models and Key Players 67 71% Other Western Hemisphere Pacific Pharmaceuticals Oncology Therapeutics Network Nutritionals Other Healthcare 2001 2002 2003
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Emerging Business Models in the Pha
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Table of Contents Introduction…
Page 5 and 6:
Acronyms Big Pharmas The top global
Page 7 and 8:
Introduction Pharma Industry Overvi
Page 9 and 10:
Market Segmentation Getting Blurred
Page 11 and 12:
Growth in the Pharma Market The pha
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Factors Restraining Pharma Market R
Page 16 and 17: Geographic Overview Introduction No
Page 18 and 19: Trends in the Pharma Industry Short
Page 20 and 21: Long Term Strategies - Forward Inte
Page 22 and 23: Long Term Strategies - Targeted Tre
Page 24 and 25: Long Term Strategies - Biotech and
Page 26 and 27: Long Term Strategies - Biotech and
Page 28 and 29: Overview of the Network Model The n
Page 30 and 31: Outsourcing The network approach al
Page 32 and 33: Many of BMS's key drugs are from ot
Page 34 and 35: Growth in Semi Block Busters Even i
Page 36 and 37: Short Term Strategies - Pre- and Po
Page 38 and 39: Short Term Strategies Against Paral
Page 40 and 41: There are two main types of M&Q act
Page 42 and 43: The Revenue Model The market dynami
Page 44 and 45: Short Term and Mid Term Strategies
Page 46 and 47: Top 10 Pharma Companies - Major Mar
Page 48 and 49: Benchmarking - Top 20 Drugs by Sale
Page 50 and 51: Benchmarking by Percentage Growth i
Page 52 and 53: Benchmarking by Geographic Revenue
Page 54 and 55: Rank 1 2 3 4 5 JnJ GSK Company Pfiz
Page 56 and 57: Altace® Biaxin® Zofran® Brands A
Page 58 and 59: Introduction Pfizer is the world's
Page 60 and 61: Introduction GlaxoSmithKline (GSK)
Page 62 and 63: Introduction Merck & Co. develops,
Page 64 and 65: Introduction Aventis’ core busine
Page 68 and 69: Strategic Direction The company aim
Page 70 and 71: Strategic Direction JnJ has been fo
Page 72 and 73: 15% Percentage Revenues by Segment
Page 74 and 75: 12 10 8 6 4 2 0 The Americas Revenu
Page 76 and 77: 20 15 10 5 0 Novartis revenues by S
Page 78 and 79: Strategic Direction Eli Lilly focus
Page 80 and 81: New Revenue Models New revenue mode
Page 82: Contact Us For more information on
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