The Pharmaceutical Industry

By: Petra Hoke, Helene Bosman, Kelly Diouf, Carlos Morales-Bello

At A Glance: About the Pharmaceutical Industry

Discover - Develop - Produce - Market

At A Glance: About the Pharmaceutical Industry Revenue: $168.7 billion | Profit: $42.3 billion

Annual Growth (‘11-16): 1.3% | Annual Growth (‘16-21): 4.5%

Exports: $38.7 billion

2,755 Businesses

* By 2021: revenue of $209.7 billion at a 4.5% expected annual growth rate

Major Players in the Market Share

Products

Overview: Issues & Recommendations for the Pharma Industry

❖ Lack of change in business models and adaptation to current consumer

climate

➢ Become more accessible online

➢ Marketing directly to customers

❖ Health consequences of medication

➢ Increased involvement of FDA

➢ More testing before release of drug

❖ Pharma companies caring more for the bottom line than their own

customers

➢ Reasonable pricing for clients

Cultural Sclerosis❖ “The prevailing management culture, mental models, and

strategies on which the industry relies are the same ones it’s traditionally relied on, even though they’ve been eclipsed by new ways of doing business”-From Vision to Decision Pharma 2020

Cultural Sclerosis❖ Old environment

➢ Economic stability➢ Print, television➢ Marketing to primary care physician

❖ Forces of Change➢ Globalization➢ Technology ➢ Financial crisis

❖ New environment➢ Economic volatility➢ Social media➢ Products marketed towards healthcare payers➢ Value-based purchasing

Consumer Relationships

❖ Cultural sclerosis vs. Consumer relationships

❖ Technological Advancements

Profit vs. People

❖ Health and safety of consumers

❖ Overpricing❖ Cost of research vs.

marketing

Environmental Impact

A vision of what a company in this industry that has great corporate social responsibility would look like

❖ Meeting client expectations

➢ New therapies, economically and clinically better than many alternatives.

❖ Keeping up with modern technology development

➢ Testing and developing processes should be updated and maintained based on the most

current technology.

❖ Placing customers health before the company’s bottom line

➢ Profit should not be the priority (EpiPen from $100 in 2007 to $608 today). More customer

health responsibility rather than making that much of a profit out of each and every one of

their products.

To conclude❖ Cultural Sclerosis

➢ Customers expect the newest, most improved product out there

➢ Recommendations: adapt to new technology

❖ Consequences of medication awareness➢ Recommendations : more regulations, more testing, and product recalls

❖ Pharmaceutical companies tend to care more about the bottom line than

the health of their consumers.➢ Recommendations: fair pricing

❖ Environmental impact