Comments on: And The Future For Pharma Looks Like… http://www.pharmalot.com/2010/02/and-the-future-for-pharma-looks-like/ News, Comment and Conversation Fri, 10 Feb 2012 19:21:03 +0000 http://wordpress.org/?v=2.6.2 By: Mike Wokasch http://www.pharmalot.com/2010/02/and-the-future-for-pharma-looks-like/#comment-464246 Mike Wokasch Fri, 12 Feb 2010 16:43:13 +0000 http://www.pharmalot.com/?p=21429#comment-464246 You have to have products the market wants and is willing to pay for. Without innovation Pharma and Biotech will struggle in the evolving new healthcare market. Even ventures into emerging markets will be finite in leveraging current assets. Diversification, while reducing risk and providing some security for revenue fluctuations also detracts from the focus and concentration of resources which will be needed to deliver the innovation in Pharma and Biotech. I believe the exception to this will be the need for Pharma to diversify and build expertise in large molecules and diagnostics (will be needed as compliments to drug treatment). Abbott and Roche have these (not sure they are working as collaboratively, drugs and diagnostics, as they should) and have infrastructure and management processes in place which mitigates the distractions or dilution of resources needed to integrate or build them. Innovative products with complimentary diagnostics are the name of the game. mike@pharmareform.com You have to have products the market wants and is willing to pay for. Without innovation Pharma and Biotech will struggle in the evolving new healthcare market. Even ventures into emerging markets will be finite in leveraging current assets.

Diversification, while reducing risk and providing some security for revenue fluctuations also detracts from the focus and concentration of resources which will be needed to deliver the innovation in Pharma and Biotech. I believe the exception to this will be the need for Pharma to diversify and build expertise in large molecules and diagnostics (will be needed as compliments to drug treatment).

Abbott and Roche have these (not sure they are working as collaboratively, drugs and diagnostics, as they should) and have infrastructure and management processes in place which mitigates the distractions or dilution of resources needed to integrate or build them.

Innovative products with complimentary diagnostics are the name of the game.
mike@pharmareform.com

]]> By: pharmavet http://www.pharmalot.com/2010/02/and-the-future-for-pharma-looks-like/#comment-463977 pharmavet Thu, 11 Feb 2010 23:58:22 +0000 http://www.pharmalot.com/?p=21429#comment-463977 Diversification is the key to pharma survival. We just don't know what form that will take. When I was with Abbott, our strength was diversification. When the Pharma division struggled in the mid-1980's, the Diagnostics Division was sterling, with the introduction of the first AIDS diagnostic kit in 1985. This is just one example. This business model has produced 342 consecutive quarterly dividends for shareholders. Diversification is the key to pharma survival. We just don’t know what form that will take. When I was with Abbott, our strength was diversification. When the Pharma division struggled in the mid-1980’s, the Diagnostics Division was sterling, with the introduction of the first AIDS diagnostic kit in 1985. This is just one example. This business model has produced 342 consecutive quarterly dividends for shareholders.

]]> By: Christopher http://www.pharmalot.com/2010/02/and-the-future-for-pharma-looks-like/#comment-463964 Christopher Thu, 11 Feb 2010 23:32:14 +0000 http://www.pharmalot.com/?p=21429#comment-463964 Interesting views from David Moskowitz. Whether Big Pharma will disappear in a few years is up for debate and, for what it's worth, I disagree. I believe what will happen is that Big Pharma will evolve more quickly than it has in recent years, that it will become less America-centric (for the reasons Moskowitz lists but not with his suggested consequences), and it will diversify in a number of ways. Companies will reduce their dependence on small molecule drugs aimed at big disease categories, they will continue to invest in generics companies (so that they can still operate in that space but with a different cost and infrastructure), they will buy into OTC businesses, animal health businesses as well as get more involved in allied services (see my example of schizophrenia treatment in an earlier post). Companies like Moskowitz's will be important for the reasons he states but I respectfully suggest they will not replace traditional pharma companies because they don't have everything else required to function as such. Instead a new model will emerge which sees traditional pharma functions outsourced to providers. We see this now (Astra Zeneca outsourcing its entire clinpharm work to Quintiles) but much more will follow. Interesting views from David Moskowitz. Whether Big Pharma will disappear in a few years is up for debate and, for what it’s worth, I disagree. I believe what will happen is that Big Pharma will evolve more quickly than it has in recent years, that it will become less America-centric (for the reasons Moskowitz lists but not with his suggested consequences), and it will diversify in a number of ways. Companies will reduce their dependence on small molecule drugs aimed at big disease categories, they will continue to invest in generics companies (so that they can still operate in that space but with a different cost and infrastructure), they will buy into OTC businesses, animal health businesses as well as get more involved in allied services (see my example of schizophrenia treatment in an earlier post).

Companies like Moskowitz’s will be important for the reasons he states but I respectfully suggest they will not replace traditional pharma companies because they don’t have everything else required to function as such. Instead a new model will emerge which sees traditional pharma functions outsourced to providers. We see this now (Astra Zeneca outsourcing its entire clinpharm work to Quintiles) but much more will follow.

]]> By: JaT http://www.pharmalot.com/2010/02/and-the-future-for-pharma-looks-like/#comment-463961 JaT Thu, 11 Feb 2010 23:28:34 +0000 http://www.pharmalot.com/?p=21429#comment-463961 Good find, Ed Good find, Ed

]]> By: David Moskowitz MD FACP http://www.pharmalot.com/2010/02/and-the-future-for-pharma-looks-like/#comment-463936 David Moskowitz MD FACP Thu, 11 Feb 2010 22:26:10 +0000 http://www.pharmalot.com/?p=21429#comment-463936 What E&Y missed is that Big Pharma won't exist in a few years. The few companies left are dinosaurs after the meteorite hit. Managed care has banished branded drugs to less than 30% of the market. Loss of marketshare explains the draconian consolidation going on in the industry for the past 20 years. The few giant companies left are terrified of failure, and have abandoned drug discovery. They have become banks with sales forces, but empty pipelines. They can be easily replaced. Drug discovery requires a new business model, since VC's are just as reluctant to part with their capital as Big Pharma. Fortunately, the earliest steps in drug discovery are the cheapest and the most fun, scientifically. My company is pioneering a new business model for drug discovery. We partner with other "starving artists": academic labs and small biotech companies. Since there's no cash, we barter: a share of the IP in exchange for labor and expertise. We fancy ourselves the small mammalian rodents who will take over the pharmaceutical industry once the dinosaurs have fallen. E&Y didn't even see us on their radar. That's how hard this industry is going to fall. What E&Y missed is that Big Pharma won’t exist in a few years. The few companies left are dinosaurs after the meteorite hit. Managed care has banished branded drugs to less than 30% of the market. Loss of marketshare explains the draconian consolidation going on in the industry for the past 20 years. The few giant companies left are terrified of failure, and have abandoned drug discovery. They have become banks with sales forces, but empty pipelines.

They can be easily replaced.

Drug discovery requires a new business model, since VC’s are just as reluctant to part with their capital as Big Pharma. Fortunately, the earliest steps in drug discovery are the cheapest and the most fun, scientifically.

My company is pioneering a new business model for drug discovery. We partner with other “starving artists”: academic labs and small biotech companies. Since there’s no cash, we barter: a share of the IP in exchange for labor and expertise.

We fancy ourselves the small mammalian rodents who will take over the pharmaceutical industry once the dinosaurs have fallen.

E&Y didn’t even see us on their radar. That’s how hard this industry is going to fall.

]]> By: Ed Silverman http://www.pharmalot.com/2010/02/and-the-future-for-pharma-looks-like/#comment-463922 Ed Silverman Thu, 11 Feb 2010 21:52:33 +0000 http://www.pharmalot.com/?p=21429#comment-463922 Hi Folks, Apologies for the delay. The link is now there. Hope this helps. Regards ed Hi Folks,

Apologies for the delay. The link is now there. Hope this helps.

Regards

ed

]]> By: Christopher http://www.pharmalot.com/2010/02/and-the-future-for-pharma-looks-like/#comment-463902 Christopher Thu, 11 Feb 2010 20:05:11 +0000 http://www.pharmalot.com/?p=21429#comment-463902 There is a report on E&Y lifesciences page but I don't think it's the one referred to above. Here's a link to the page; the article is in the south east corner: http://www.ey.com/GL/en/Industries/Life-Sciences There is a report on E&Y lifesciences page but I don’t think it’s the one referred to above. Here’s a link to the page; the article is in the south east corner: http://www.ey.com/GL/en/Industries/Life-Sciences

]]> By: harpy http://www.pharmalot.com/2010/02/and-the-future-for-pharma-looks-like/#comment-463837 harpy Thu, 11 Feb 2010 16:29:54 +0000 http://www.pharmalot.com/?p=21429#comment-463837 Ya gotta link, Ed? I'm being lazy. thx! Ya gotta link, Ed? I’m being lazy. thx!

]]> By: patrons99 http://www.pharmalot.com/2010/02/and-the-future-for-pharma-looks-like/#comment-463823 patrons99 Thu, 11 Feb 2010 15:35:22 +0000 http://www.pharmalot.com/?p=21429#comment-463823 So much for any perceived "right to privacy" in this country. With full implementation of the EMR, pharma and the insurers, will have a continuous feast on personal information of all kinds that arguably should remain private. In the wrong hands, information of this type could even be used for extortionate purposes. It is market-based medicine's ultimate "wet dream". There's a synergy and convergence taking place. RFID chip implant "innovations" are already FDA "approved". We are assured that our personal health information will be kept in a "secure" electronic database. Gosh, I guess we need not fear such progress. It's inevitable. Better start getting ready for nanotechnology. So much for any perceived “right to privacy” in this country. With full implementation of the EMR, pharma and the insurers, will have a continuous feast on personal information of all kinds that arguably should remain private. In the wrong hands, information of this type could even be used for extortionate purposes. It is market-based medicine’s ultimate “wet dream”. There’s a synergy and convergence taking place. RFID chip implant “innovations” are already FDA “approved”. We are assured that our personal health information will be kept in a “secure” electronic database. Gosh, I guess we need not fear such progress. It’s inevitable. Better start getting ready for nanotechnology.

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