This document discusses different business models for pharmaceutical companies worldwide. It identifies three main models: 1) Drug discovery - The most challenging model that requires huge investments but can provide high returns if a new drug is successfully developed and launched. Only a few major companies regularly discover new drugs. 2) Generics - Launching generic versions of drugs after patents expire. Many companies compete in this space by filing to be first generic manufacturer. 3) Partnerships - Entering agreements with innovator companies to co-market or distribute existing drugs, such as several companies partnering with Novartis to sell versions of Vidagliptin. These partnerships provide revenue without discovery risks.

1. Pharmaceutical Companies
(Business models)
(World over)
Available on Slideshare
from May 02, 2017 09.30 PM
Amit ka PPT (Amit’s
PPT)
Dr. Amit Ratn Gangwal Jain
(MPharm., PhD.)

2. • Pharmaceutical industries are among
those few industries where cleanliness
and sterility (microbes) are most
important concern areas. These two
features make these industries different
from others.
Costly affairs

3. Around the world following business
models are there, which these industries
are surviving on:
Model #1
The most challenging, daunting, high ROI
(return on investment) model, rewarding
and recommended model is ????????

4. This is the most successful, envious
and long-time rewarding way to survive
and in fact this makes companies
numero uno, if they keep on delivering
products from this most difficult model.

5. This model is drug discovery
Image on next page has been taken from
http://www.compoundchem.com/
wp-
content/uploads/2016/01/The-
Drug-Discovery-Process.png

7. But drug discovery is not everyone’s
cup of tea as it requires
Huge money
Greatest talent in the world/town (yes
believe it)
Great data analytics (Artificial
intelligence will solve the issues).

8. https://lillypad.lilly.co
m/entry.php?e=8934
This funnel
shape figure
shows
probability of
becoming a marketable
drug molecule from
thousands of
candidates.

9. But the fruits are really sweet and laudable; if a
company succeeds in launching a new drug
molecule.
More & more pharma companies
should join this bandwagon as here is
least competition Vs other business
strategies (discussed shortly); but still
only handful of companies are
launching drug molecules (new) for
years and this will hold true for years to
come.

10. Because of this fact, the
companies which are launching
drug molecules are pharma giants
and not simply a company.

11. How many Indian companies
are there?

12. • https://www.linkedin.com/pulse/top-10-
pharmaceutical-companies-2016-luca-
dezzani-md
• This is the web source for previous
image I used to show top companies of
2016.

13. Model #2
Launching of generic versions of off
patent molecules. Here the one who file
para IV application first, gets the nod to
launch generic version. After that any
one can launch generic of said molecule.
Generics can be launched only after 20
years from the date of patent award to
innovator. Lots of players are there.

14. Model #3
– Some sort of business agreement with
innovator company in a win-win condition.
– E. g. presently in India Vidagliptin
molecule is being sold under the following
brand names:
• Galvus (Novartis is the owner/patentee of
Vidagliptin)
• Jalra (USV entered into some pact with
innovator company that is Novartis)
• Zomelis (Abbott entered into some pact with
innovator company that is Novartis)

16. Like wise there are other brands by other giants:
– Brilinta (drug molecule is Ticagrelor), Forxiga (Innovator is Astra
Zeneca).
– Sun pharmaceutical is selling same molecule (Ticagrelor) under
the brand Axcer under some agreement with the innovator.

17. Other examples are of insulins
where brand names are same
but other companies just work
as distribution partner. This is
common in India.

18. • At present, generally manufacture and
importing of these innovator molecules
are solely managed and controlled by
innovators only.

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more PPTs

23. Thanks