New Pharma Models for a New Healthcare Era
Author: Melanie Senior
Publisher: Datamonitor Healthcare
Key Questions Answered
- What are the changes in the healthcare landscape that are necessitating a change in the pharma business model?
- What types of partnerships will be most critical for success in the new commercial approaches?
- In what ways are tech firms posing competition to pharma companies?
- Which therapeutic areas are most impacted by greater use of digital tools?
- What lessons can pharma take from other sectors’ adaptions to technological change?
- What challenges must pharma overcome to remain competitive in tomorrow’s marketplace?
- As real-time, high-volume data become increasingly central both to delivering and developing effective therapies, pharmaceutical firms are up against tech titans including Amazon, Apple, and Google, as the latter shift their attention to the highvalue healthcare space.
- Pharmaceutical companies have been slow to acknowledge the threat of technology players in healthcare, with many citing regulatory hurdles as their main defense. But this argument is weakening, as regulators themselves adjust to the digital age, and as tech giants hire and build the expertise they need to address regulations.
- A key benefit of working with digital health players is that they are cozying up to providers with an attractive proposition: user-friendly, socially acceptable tools that may improve outcomes by themselves or through increasing the efficiency of traditional drugs, without the complications of supply chains or pharmacological side effects.
- Most pharmaceutical firms know that shifting their businesses to embrace digital, consumer-centricity; value-based and crosssectoral partnerships; and the universe of value that lies beyond novel biopharmaceuticals will not bring immediate financial returns.
- Change – including cultural change – can cost money in the short term. But, ultimately, the returns will follow.
The entry of technology players into healthcare, alongside empowered consumers and payers’ singular focus on cost-effective outcomes, is forcing change across all of pharma’s traditional functions. Modern pharma needs to build new kinds of relationships, with each other, with tech players, and with healthcare providers and payers.
6 THE REIMAGINING OF HEALTHCARE
6 Out with the old, in with the new: how pharma is changing along the value chain
12 CASE STUDIES
12 Fresenius: integrating care using data
14 Novo Nordisk: from drugmaker to data collector
15 Roche: data curator
15 Sanofi partners for a place in China’s health delivery revolution
16 LEO Pharma: building trust by putting the patient first
17 Amgen: from transactional to collaborative
21 TECHNOLOGY FIRMS ARE REAL COMPETITORS
21 Big pharma is up against big tech
21 Tech firms are hiring healthcare talent
21 Tech is cozying up to payers and providers
22 Pharma has been slow to see the tech threat
24 DIGITAL PRODUCTS CAN ENHANCE DRUG PORTFOLIOS
24 Digital therapeutics may enhance drug portfolios with patient data
24 Pharma is investing in digital therapeutics
25 Digital health firms are working with providers
25 Data-collecting pills to boost outcomes
25 Proteus Digital Health: turning pharma’s model on its head?
28 CHALLENGES TO EMBRACING NEW TECHS AND NEW PARTNERS
28 Do better relationships make money?
28 The challenges to embracing digital
31 LESSONS FROM OTHER SECTORS
31 Focus on what the customer wants
31 Consultants also take a cross-sectoral view
34 21ST CENTURY PHARMA: COLLABORATIVE SOLUTION PROVIDERS
37 About the author
LIST OF FIGURES
7 Figure 1: Old vs new pharma business models
29 Figure 2: Challenges to embracing the digital business model in pharma
35 Figure 3: All change: pharma’s new look in a patient-centric, digitalized healthcare world
LIST OF TABLES
8 Table 1: Changes in key pharma activities in the new healthcare landscape
12 Table 2: Takeaways of case studies illustrating changing business models
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