Healthy Skepticism Library item: 15177

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: report

PriceWaterhouseCoopers
Pharma 2020: Marketing the future: Which path will you take?
: PriceWaterhouseCoopers 2009
http://www.pwc.com/Extweb/pwcpublications.nsf/docid/B1221EC9D057309F852575610076732C

Abstract:

By 2020 the current role of the pharmaceutical industry’s sales and marketing workforce will be replaced by a new model as the industry shifts from a mass-market to a target-market approach to increase revenue.
Pharma 2020: Marketing the future – Which path will you take? the third in the Pharma 2020 series, outlines a confluence of dynamics that lead to a new marketing and sales system with a smaller, more agile and smarter sales force. The pharma industry is no longer being rewarded for incremental innovation, me-too products and selling the most pills. Companies will need to demonstrate that their brand adds value to patients and they will have to offer a package of products and health services that the market not only wants and needs but is willing to pay a premium for. The paper highlights some very strong facts related to the need for Pharma to change its marketing and sales functions in order to sustain future growth and performance.

This report outlines in some detail what those changes in the business environment will be and provides pharma companies with indicators of organisational and operational structure that could influence their success and readiness to compete.

This report highlights the fundamental dynamics the industry faces that are reshaping the pharmaceutical marketplace:

Chronic disease is soaring
Healthcare policy makers and payers are increasingly mandating what doctors can prescribe
Pay-for-performance is on the rise
The boundaries between different forms of healthcare are blurring
The markets of the developing world, where demand for medicines is likely to grow most rapidly over the next 13 years, are highly varied
Governments are beginning to focus on prevention rather than treatment
Regulators are becoming more risk-averse
In order to be successful, companies will need to stop the aggressive marketing focusing only on the product of the current model and:
Recognise the interdependence of the payer, provider and pharmaceutical value chains
Invest in developing medicines the market wants to buy
Adopt a more flexible approach to pricing
Develop plans for marketing and selling specialist therapies
Manage multi-country launches and live licensing
Form a web of alliances to offer supporting services
Create cultures that are suitable for marketing specialist healthcare packages
Develop marketing and sales functions that are fit for the future and a knowledge based commercial organisation
More information

Pharma 2020: The vision, first in the series highlights a number of issues that will have a major bearing on the industry over the next 11 years. The publication outlines the changes we believe will best help pharmaceutical companies realise the potential the future holds to enhance the value they provide to shareholders and society alike.

Pharma 2020: Virtual R&D, the second in the series explores opportunities to improve the R&D process. This paper proposes that new technologies will enable the adoption of virtual R&D; and by operating in a more connected world, industry, in collaboration with researches, governments, healthcare payers and providers, can address the changing needs of society more effectively.

Notes:

Download Pharma 2020 Marketing the Future (933kb)
http://www.pwc.com/Extweb/onlineforms.nsf/docid/F2F17AFD9830A241852575620002434F