The pharmaceutical industry faces challenges such as declining R&D productivity, a diverging global market, increasing pricing pressures, and an aging population. Strategic thinking is needed to identify key factors that will impact companies and position them for long-term prosperity in a changing environment. However, many executives fail to think strategically and rely too much on short-term tactics rather than developing a clear long-term plan for how their company should adapt.

1. Strategic thinking in pharmaceutical
industry today …
Most of us in Pharma industry today, if NOT all, claim that we have robust-strategic-vision.
Conversely, we almost always find that many of apparently effective companies do not even
have merely a clear plan.
Have a look at the key-facts of today’s industry;
R&D investment model of Big-Pharma is on its
last legs
A substantial reduction of productivity in NCEs “The global generic
discovery pharmaceuticals market is
A diverging and declining global market likely to experience strong
An aging population outpacing health care
growth in the next few years,
expenditures vs. GDP
An increasing pricing pressure estimated up to US$231 billion
in 2017.”
This prediction is based on
impending patent expiration of
In semi-to-highly regulated key blockbuster drugs worth
territories generics shift remains US$150 billion, as well as
opportunity for growth in territories government efforts to reduce
with underdeveloped healthcare
systems. Competition is high and the drug bill.
big companies are using different
strategies:
some big companies have a
diversified portfolio strategy, “Strategic thinking is the process that extracts the best
some have a niche portfolio innovative & thoughtful rationale thinking vis-à-vis what
strategy, is happening in business and what direction the
some have an outsourcing company should be heading in.”
strategy, and
some employ all three
Strategic thinking identifies the key factors that dictate the future of an organization and
enables management to put the corporation in a position of long-life and prosperity within
changing environment.
The new face of the Pharma industry is reflecting from varying factors. Thinking strategically has
never existed as much it does today and short-terms tactics are least important.
This is what most executives at the key positions in the Pharmaceutical industry today miss as
they become used of working in a particular old style, analogous people, no-changing cultures
and deceivingly unchanging environment.
Syed Adeel Ahmed
life-science business development professional
syedahmed.adeel@gmail.com