PWC’s report concerns the present state of Big Pharma, and the changes they need to make to make it to 2020. Undoubtedly Big Pharma is faced with big challenges, and it seems they will need to make radical changes to address them.
- Looking at the overall picture, there are many opportunities given developments in genomics and big data, and the escalating demands for medicines. However big pharma R & D has poor productivity, there is tighter drug approval regulation, competition from generics is increasing and governments are starting to impose pricing.
- Many of the mature markets are reforming their healthcare systems to lower costs. Big pharma is increasingly under pressure to deliver new medicines which are both clinically and economically better. Pharma needs to develop ways to measure the real-world value of a new medicine.
- For R & D pharma need to reevaluate how they make their decisions. They need to build balanced portfolios, which have different products with different risks. Then they need to review progress much more regularly than the present norm of every 6 months. They need to think like an investor and also compare their portfolios to others.
- Pharma must realise that they are in cultural sclerosis. They need more open minds and the courage to experiment. It might help to hire executives from other industries. Layers of middle management should be reduced. Relocating teams to biotech clusters should be considered.