How will "Pharma 2.0" fare versus US President Obama and the credit crunch?

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.

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