New Strategies For Drug Company Profitability

20 February 1995

The pharmaceutical industry is at a watershed, and must decide on new strategies to deal with an increasingly hostile health care environment, says a new study from Financial Times Management Reports.

The report, Pharmaceutical Profitability: New Strategies for Success in a Changing Market, by Datamonitor analyst Tom Brown, notes suggestions that successful pharmaceutical companies in the future will be characterized by: volume rather than price-driven sales growth; a youthful existing drug portfolio with good new product flow; an innovative R&D pipeline targeting unmet therapeutic needs; and the appropriate sales/marketing mass for its market segments.

It says the industry's future depends on:

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