A Transformation In Life Sciences

we are witnessing a major and somewhatIn addition the biotechnology, pharmaceutical and
painstaking transformation in the life sciences (ormedical devices industries are faced with a more
biotech, pharma and medical devices) industry,primary concern; to redevelop a business model
whilst we endure the most severe recession inthat’s seen the industry through 20 years
decades. Susan Snyder, a senior consultant atand which is now starting to lose its practicality.
Hay Group says that the industry has been hit byMatt Gurin, a senior consultant and life sciences
a double blow, stating: “Life sciences companiesspecialist at Hay Group says: "The old business
are facing the need to reinvent the way they domodel—centered around developing blockbuster
business at the same time that their income isdrugs, huge margins, and intensive marketing to
down, with the recession forcing insurers andphysicians by an ever-growing sales force—has
government to reevaluate how dollars arerun its course. The new model is still emerging,
spent”.but it will be customer-driven, with a stronger
According to Snyder, in order to reinforce theirfocus on creating better solutions and not just
position within the market, biotech and pharmanew compounds." In addition, another
organisations need to boost their individualtransformation will see sales move from a
transformations and rejuvenate their firms,commercial strategy of targeting physicians to
pointing in the direction of practices such as abusinesses approaching businesses — aimed
cross-functional approach (similar to thosea larger communities like insurance and
followed by this year’s Best Companiesprescription payers.
for Leadership) as helpful guidance.These transformations have dire consequences
The obstacles ahead are undoubtedly going tofor the manner in which pharma, biotech and
difficult. In spite of the economic challenges facedmedical devices firms conduct business, and
by every industry, firms within the life sciencesindustry leaders are all too familiar with these
industry has its own economic crisis all togetherconsequences. All of whom understand there is a
— a gigantic loss of somewhere in theneed for organisational change and to do away
region of 135 billion USD for products whosewith old ways of thinking and doing.
patent protection will expire by 2013. By this time,According to data taken from this year’s
an average of eighteen percent of theBest Companies for Leadership survey carried out
industry’s global revenue will be exhaustedin joint effort by and Hay Group, there is a
so making up for this massive loss is hugelysuggestion that pharma, biotech and medical
important.devices firms still have a long way to go to
Replacing the Business Modelrejuvenating their businesses.