Over the last twenty years the pharmaceutical industry has built up its sales forces and refined its marketing practices principally around targeting primary care physicians and selling blockbuster products. Today these operations consume 20 to 25 per cent of a company’s revenues.
Yet, they are becoming increasingly ineffective as providers are restricting sales representative access to physicians, results from direct to consumer advertising are disappointing, and payers are ratcheting down prices.
To stay competitive commercial operations organizations must:
- Analyze their value chain to identify opportunities for working more closely with healthcare payers and providers to ensure that they develop medicines which have real social and economic value and are focused on outcomes
- Supplement medicines with a range of health management services in order to improve compliance and protect the value of its products
- Form alliances with local service providers – alliances that are much more sophisticated than current arrangements
- Develop a secure, interoperable technological infrastructure
- Manage new intellectual rights issues
- Create stronger brands and definitions of the Pharmaceutical industry’s role