In recent years, the research-based pharmaceutical industry has begun to adapt its business model in response to growing industry constraints and the decline of primary-care focused blockbuster therapy. This process of change has recently been disrupted by unprecedented challenges caused by the global economic downturn and new US President Barack Obama's planned overhaul of the US health care system. To continue on its journey towards what has been dubbed "Pharma 2.0," the sector needs to balance the more pressing short-term issues against the longer-term trends shaping the industry, according to Alistair Sinclair, pharmaceutical strategy senior analyst at market analysis and forecasting group Datamonitor.
Historically, drugmakers have faced a number of major challenges, both internally and externally, which have shaped the pharmaceutical industry we see today. Ongoing issues include the declining efficiency of companies' internal R&D processes, together with growing competition from both branded and generic players in increasingly crowded markets; resulting in fierce price competition. Heightening regulatory pressures also mean companies are more restricted in their promotion of products to patients and physicians, with payer decisions ever more critical to whether a drug is prescribed.
Employing new tactics
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