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Emerging Business Models in the Pharmaceutical Industries ...

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New Revenue <strong>Models</strong><br />

New revenue models are favor<strong>in</strong>g pharma companies<br />

despite <strong>the</strong> fall of block busters. Pharma companies need<br />

to significantly cut down <strong>the</strong>ir costs, by as much as 13.5%<br />

of <strong>the</strong> revenues, and offset future loss of revenues caused<br />

by withdraw<strong>in</strong>g block busters.<br />

Added revenues contributed by price hikes, semi block<br />

busters <strong>in</strong> <strong>the</strong> form of NMEs, brand equalisation, generic<br />

buy back, and overall market growth will fur<strong>the</strong>r add to<br />

total revenues.<br />

W<strong>in</strong>n<strong>in</strong>g Proposition<br />

The w<strong>in</strong>n<strong>in</strong>g proposition will come <strong>in</strong> <strong>the</strong> form of short and<br />

long term strategies.<br />

Short term strategies are ma<strong>in</strong>ly geared towards pre- and<br />

post-patent expiry directives, and <strong>the</strong> launch of semi block<br />

busters.<br />

Long term strategies revolve around owned health care<br />

kiosks and consistent improvement <strong>in</strong> efficiency and cost<br />

reduction with <strong>the</strong> help of <strong>the</strong> <strong>in</strong>tegrated network model.<br />

Conclusions<br />

Strategic Analysis of <strong>the</strong> Pharma Market, Future Revenue <strong>Models</strong> and Key Players 80

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