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Emerging Business Models in the Pharmaceutical Industries ...

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Introduction<br />

Pharma Industry Overview<br />

The pharma <strong>in</strong>dustry is affected by <strong>the</strong> dynamic shifts <strong>in</strong> <strong>the</strong><br />

market. New revenue models are result<strong>in</strong>g from activities such<br />

as parallel trade, <strong>the</strong> generic vs. patent fight, mergers and<br />

acquisitions (M&A), <strong>in</strong>-licens<strong>in</strong>g and out-licens<strong>in</strong>g, and <strong>the</strong><br />

choice between semi block buster and block buster. The shift<br />

from chemical-based small molecules to biology-based large<br />

molecules like antibodies and prote<strong>in</strong> has also created new<br />

opportunities <strong>in</strong> <strong>the</strong> <strong>in</strong>dustry.<br />

Dist<strong>in</strong>ct Position<strong>in</strong>g for Pharma Companies<br />

Pharma companies are dist<strong>in</strong>ctly position<strong>in</strong>g <strong>the</strong>mselves on <strong>the</strong><br />

basis of <strong>the</strong>ir capabilities, bank<strong>in</strong>g on <strong>the</strong>ir R&D strength,<br />

market<strong>in</strong>g network, and capitalisation to decide <strong>the</strong>ir portfolio.<br />

Smaller Pharma companies are Consolidat<strong>in</strong>g form<strong>in</strong>g a<br />

“Supernet” of Pharma companies complement<strong>in</strong>g <strong>the</strong>ir<br />

capabilities to each o<strong>the</strong>r. The Big Pharma companies are<br />

consolidat<strong>in</strong>g to lead <strong>the</strong> league as “Super Pharmas”.<br />

Companies have to choose between pharma, biotech and <strong>the</strong>ir<br />

respective generic models.<br />

Niche players are tend<strong>in</strong>g towards M&A to safeguard <strong>the</strong>ir<br />

focus, and achieve bus<strong>in</strong>ess goals. Pharma companies are<br />

position<strong>in</strong>g <strong>the</strong>mselves as biotech or pharma on <strong>the</strong> stock<br />

market. Incorrect position<strong>in</strong>g of <strong>the</strong>se companies can impact<br />

<strong>the</strong>ir capitalisation, which rema<strong>in</strong>s <strong>the</strong> key to growth.<br />

Strategic Analysis of <strong>the</strong> Pharma Market, Future Revenue <strong>Models</strong> and Key Players 7

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