Forecasting Pharma’s Future

Given the volatility of today’s financial landscape, companies, more than ever, need a robust forecasting strategy that is clear, effective and accurate –

Ken Fyvie and Craig Wylie, pharmaceutical experts at PA Consulting Group, give their views on the impact that the health of the global economy will have on the future of the pharmaceutical industry.

Ken notes that countries are spending an increasing proportion of their GDP on health.         

He is quoted in the article: “This is not sustainable.  The current stress in global economies and the pressure on sovereign wealth are sharpening the challenge.  However, in most cases the responsibility for meeting the current and future demands for healthcare will still have to be met by governments with funding from the public purse. Companies are recognising the need to provide higher value from lower cost options. The trend to increased use of generics and more frequent and rigorous assessment of the value for money associated with new medicines make that requirement very clear.”  

In the article, Ken explains that "both the payer and the provider communities are going to be demanding a great deal more evidence of effect and value from pharmaceutical products.  Companies are starting to realise that the days of the traditional sales and marketing model are passed, and they need to be thinking about how to engage their evolving community of customers differently. They need to be thinking much more astutely about the value proposition for the payer community, and how to source and communicate the evidence that supports those propositions.”

Craig points out that “emerging markets are going to change the perspective and focus pharmaceutical companies have about their portfolios. My expectation is that within six years, the direction of companies will be quite different than they have now,” he says.

Craig also notes that more pharmaceutical companies are looking at in-sourcing products and entering into more partnering agreements.

And regarding strategies to negotiate the changing pharma landscape, Ken says that “good strategy is based on good information in the hands of people with the right experience and intelligence. Through that combination of experience, even wisdom and access to quality information, is what makes for good decision making.”

To read the article in full, click here.      

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