Currently, the high cost of drug development, innovation, fatigue, low efficiency of drug development model. Many pharmaceutical companies to examine these issues attributed to increasingly stringent government regulation, labor costs and the growing generics market led to the downward pressure on drug prices and so on. In response, Lilly corporate strategy consultant BernardMunos do not agree. In his view, led to the current plight of large pharmaceutical companies into developing innovative pharmaceutical companies is mainly due to the conservative mode.
1950 to 2008,China infrared ear thermometer the U.S. Food and Drug Administration (FDA) approved a total of 1222 kinds of new drugs (new molecular entities, including 1103 kinds of drugs and new biological agents 119 kinds). However, according to the Pharmaceutical Research and Manufacturers Association China upper arm blood pressure monitor (PhRMA) of information, China basal thermometer manufacturer new drug R & D investment over the same period also show rapid growth, average annual growth rate of 12.3%, has now reached about 500 billion U.S. dollars. Despite the increased drug R & D investment, but over the past 50 years the number of approved drugs remained relatively stable each year about 25 to 30 species, while still below this level in 2010. In other words, China automatic digital blood pressure monitor the increase in R & D investment and innovation or does not improve drug development productivity.
In addition to innovation and productivity, fatigue, the pharmaceutical companies also face financial and business challenges. First, the development cycle to extend the regulatory review requirements and government led to increased R & D costs spiral; Second, many "blockbuster" level products, especially sales of over $ 1.5 billion in the drug patent expires threaten the company's total revenue, to 2015 sales of patented drugs will result in loss of 41%.China upper arm blood pressure monitor manufacturer To the end of 2012, large pharmaceutical companies 20% of the market will be generic erosion. Again, generic prescription drug sales in 2014 will account for 17% of the global drug market share of 10% in 2008. Finally, health care reform and insurance companies and third party payers exert pressure on drug prices to repay the cost of drugs will lead to reduced capacity, the increasing marginalization of many patented prescription drugs.
Drug producers began to cut staff, restructuring and mergers and acquisitions to control costs, and thus adapt to current changes in the situation. For example, in the past four years, the world's top 10 large pharmaceutical companies lay off more than 20 million people. The same period, the pharmaceutical industry mergers and acquisitions activity is intense, such as Pfizer acquired Wyeth, Merck acquired Schering-Plough. At the same time, large pharmaceutical companies for the acquisition of biotechnology companies are also very active. Whether downsizing or merger, the two pharmaceutical companies to make strategic adjustments in the short term goal is to help companies control costs and maintain the stock price. However, these strategies do not help improve the company's productivity or to promote innovation, while the latter is the most number of large pharmaceutical companies eager to get.
Weakness in innovation and R & D productivity
Pharmaceutical companies and corporate executives have become increasingly among internal staff to achieve such a consensus: In today's highly competitive global pharmaceutical market, the "blockbuster" drugs-class business model has lost its former vitality, it is difficult to adapt to reality . A recent study shows that despite the new drug R & D investment continues to grow, but the recent approval of new molecular entities to achieve blockbuster sales levels of about 21% success rate in the past 20 years, almost unchanged.
However, despite the drug a "blockbuster" level products, the success rate is so low, there are still many large pharmaceutical companies still rely on "blockbuster" drugs-class model. Therefore, the "blockbuster" level of thinking has become an obstacle to drugs or even kill many innovative and high potential barriers to the development of new molecular entities.
Many business analysts believe that large pharmaceutical companies in order to maintain the productivity of drug development must be changed. These changes include: improving the productivity of drug development; cost-cutting measures to maintain continuity; adjustment strategy, adapt quickly to emerging markets, market share. Some analysts also for large pharmaceutical companies through the acquisition of existing research and development to ease the problem remains controversial, but they believe that the large pharmaceutical companies to make fundamental changes in business models, in order to maintain the company's survival is necessary.